From Nasdaq:

The Nasdaq stock TSLA has been declining in value, dropping almost 20% in the past 30 days and 30% in the past six months. However, this presents an opportunity for investors as there is a possibility of growth.

Tesla has beaten Wall Street predictions by delivering 484,507 vehicles in Q4 of 2023 and 1.81 million in all of 2023, exceeding its 1.8 million target. Analysts have maintained their price targets and ratings on TSLA, but new attention is shifting towards Q4 earnings and a forecast for 2024.

The upcoming Austin, Texas-based company earnings project a decline in expected earnings for Q4 2023, while revenue is projected to grow by 20% year over year. Critics often cite this disparity in profit decline and revenue growth as a reason to avoid the stock.

Tesla has enacted multiple price cuts to stimulate an increase in sales, leading to both new buyers and record vehicle registrations. However, the price cuts have also suppressed both average revenue per vehicle and Tesla’s profit margins.

Despite near-term headwinds, Tesla is preparing for growth and remains focused on high-margin services such as the Full Self-Driving (FSD) software, which is expected to improve the company’s profit margins once fully operational.

Despite recent struggles, Tesla remains in a strong position, armed with robust free cash flow and brand loyalty, well-positioned to lead the EV space in the years ahead.



Read more: Tesla (TSLA) Q4 2023 Earnings: What to Expect