In the fourth quarter alone, Tesla generated over $2 billion in free cash flow and more than $3.5 billion for the full year. Legg sees these funds as a war chest for pursuing further growth opportunities. On a macro level, Legg acknowledged that regulatory uncertainty and growing EV competition are creating downward pressure on vehicle pricing.
The company plans to launch unsupervised full self-driving (FSD) as a paid service this June in Austin, Texas. Tesla’s Optimus robot production ramp is expected to continue through 2026 and beyond. Legg’s model only accounts for baked-in vehicle growth but sees significant potential upside should the Robotaxi and Optimus initiatives scale effectively.
Tesla’s stock is grouped with the consumer discretionary sector for investing purposes. Tesla’s main rivals include established automakers such as Ford Motor Co. (F) and General Motors Co. (GM), as Best forex signals well as newer, fast-growing electric vehicle makers like Lucid Group Inc. (LCID) and China-based NIO Inc. (NIO). In FY 2021, ended Dec. 31, 2021, Tesla posted net income of $5.6 billion on revenue of $53.8 billion. Tesla, Inc.’s name change came in 2017 shortly after then and current CEO Elon Musk agreed to acquire SolarCity and expand the company’s product line.
Services
Tesla’s stock price was essentially flat for several years after the 2010 IPO. In 2008, the carmaker had endured a near-death experience, and in the lead-up to the IPO and afterwards, it was selling only one car, the original Roadster. The business plan at this point was for CEO Elon Musk and his team to keep the lights on long enough in order to roll out Tesla’s first built-from-scratch car, the Model S sedan. Tesla’s financial position also remains robust, with $36.5 billion in cash and investments.
This would involve Tesla owning and operating a fleet of self-driving cars, potentially repurchasing vehicles from existing customers as leases end or vehicles are traded in. Legg noted that Tesla’s unsupervised FSD service, set to begin in June, could expand to additional locations if proven proficient. Legg emphasized the release of more affordable Tesla models in 2025 as a key catalyst for growth.
Price Target and Rating
The net worth of its CEO and largest shareholder, Elon Musk, is also intimately tied to Tesla’s stock performance, and the recent decline has contributed to a notable reduction of his overall fortune. There is also the question of how focused Musk has been on running things at Tesla, as he spends much of his time and attention in Mar-a-Lago or Washington DC. He has always had a broad range of other companies and interests, including rocket and satellite company SpaceX, social media platform X and artificial intelligence company xAI, among others. He now has an office at the White House as he focuses on plans to identify federal programs that can be cut by the new administration, to further take him away from the Tesla offices and factories where he once worked around the clock. Investors will be looking for guidance from Musk and Tesla on Wednesday on the future of those credit sales.
Tesla Analyst Data
- The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services.
- But Musk is on record saying he approves of removing what he called a “subsidy” for EV sales.
- Investors will be looking for guidance from Musk and Tesla on Wednesday on the future of those credit sales.
- Indeed, the price looks sets to gap above the pattern’s upper trending on Thursday in a move that could resume the stock’s upward momentum.
- Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally.
- Since Trump took office, however, its price has seen a more marked decline, shedding 20 percent to close at $336.51 on Wednesday.
- The stock made a historic run following Trump’s victory in the 2024 presidential election, rising 92 percent to reach an all-time high of $483.99 on December 17.
Tesla is now headquartered in Austin, Texas, and operates global https://www.forex-world.net/ manufacturing capacity through a network of Gigafactories. The company has 5 Gigafactories in key locations around the world with a 6th planned. The Gigafactories are noteworthy for multiple reasons including their size, end-to-end production capability, and non-reliance on grid-supplied power. Enter your email address and we’ll send you our list of which EV stocks show the most long-term potential.
- While even Musk admits “I tend to be a little optimistic with time frames,” he also said that only regulatory hurdles are keeping keep his next generation of self-driving robotaxis from being a reality soon.
- This segment of the business was merged with Solarcity to form the Energy Generation and Storage segment.
- During dips, investors should initially watch the $360 level, a location where the shares could find support near two minor peaks that formed on the chart in November.
- Tesla’s fourth-quarter results, released in late January, came in below analysts’ estimates.
- Tesla Inc. (TSLA), the world’s largest automaker by market value, designs, builds, and markets fully electric vehicles (EV) and energy generation and storage systems.
- The Gigafactories are noteworthy for multiple reasons including their size, end-to-end production capability, and non-reliance on grid-supplied power.
- In the fourth quarter alone, Tesla generated over $2 billion in free cash flow and more than $3.5 billion for the full year.
About Tesla Stock (NASDAQ:TSLA)
Since hitting a record high last month, Tesla shares have consolidated within a flag, a bullish chart pattern that indicates a brief pause in the stock’s uptrend before another move higher. Indeed, the price looks sets to gap above the pattern’s upper trending on Thursday in a move that could resume the stock’s upward momentum. Tesla (TSLA) shares gained ground in extended trading on Wednesday as optimism over the automaker’s self-driving outlook trumped fourth-quarter results that came in below Wall Street’s expectations. On May 12, 2021, Musk announced on Twitter that Tesla would stop accepting Bitcoin payments for its vehicles, citing concerns over “rapidly increasing use of fossil fuels” for Bitcoin mining and transactions.
Why Is Tesla Stock Falling?
Beyond Tesla’s own performance, some have suggested that the stock’s decline may be tied to the trade policies of the new Trump administration, despite earlier predictions that his victory could usher in sweeping regulatory changes that would benefit the electric vehicle giant. Tesla’s fourth-quarter results, released in late January, came in below analysts’ estimates. While overall revenue saw a slight increase, operating income dropped 23 percent year-over-year to $1.6 billion.
Several institutional investors and hedge funds have recently made changes to their positions in the stock. Gallagher Fiduciary Advisors LLC raised its position in shares of Tesla by 4.3% during the 4th quarter. Gallagher Fiduciary Advisors LLC bitbuy review now owns 6,889 shares of the electric vehicle producer’s stock valued at $2,782,000 after buying an additional 283 shares in the last quarter. Meiji Yasuda Life Insurance Co raised its position in Tesla by 0.4% in the 4th quarter.