From Nasdaq: 2024-09-19 15:46:07

Tesla, Inc. (TSLA) faces removal from elite tech stock group after series of challenges including price cuts, layoffs, and executive exits. US market share drops below 50% for first time in Q2, amid growing competition. Anticipated Robotaxi launch on Oct. 10 could be a game changer for the company. Stock rebounds from YTD lows, but faces skepticism over deadlines and competition. Tesla’s valuation remains high at 97 times forward earnings.

After Q2 earnings miss expectations, Tesla stock plummets over 12% despite revenue exceeding forecasts. Automotive revenue falls 7% annually, adjusted earnings per share falls short by $0.10. Cash reserves swell to $30.7 billion, driven by $1.3 billion in free cash flow. Company aims to ramp up production with new, affordable models starting in 2025, but faces regulatory hurdles in self-driving technology.

With Robotaxi launch scheduled on Oct. 10, investors await Tesla’s latest AI technology demo and autonomous cyber-cab showcase. Analysts predict possible unexpected innovations at the event. Regulatory limitations pose challenges for Tesla’s ambitious plans compared to rivals. Analysts cautious on stock rating despite long-term bullish prospects. Wall Street consensus remains at “Hold,” with Morgan Stanley’s price target suggesting 27.8% upside potential.



Read more at Nasdaq: Will the Tesla Robotaxi Reveal Be a Sell-the-News Event?