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Incorporated in 2003 and headquartered in Austin, Texas, Tesla, Inc. (TSLA) is a global leader in electric vehicles and clean energy solutions, with a market cap of $935.4 billion. The company specializes in designing and manufacturing cutting-edge electric vehicles (EVs), battery storage systems, and renewable energy products, driving innovation and sustainability across the automotive and energy industries.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” Tesla firmly holds its place in this elite category. This EV giant has redefined transportation with its industry-leading EVs, cutting-edge battery technology, and commitment to sustainable energy.
Tesla is currently trading 42.3% below its 52-week high of $488.54, reached on Dec. 18. Over the past three months, TSLA stock declined 15.3%, underperforming the Global X Autonomous & Electric Vehicles ETF (DRIV), which declined 1.8% over the same period.
Over the longer term, TSLA stock is down 30.2% on a YTD basis, while DRIV has declined 1.7% over the same period. However, over the past 52 weeks, TSLA has surged 41.2%, outperforming DRIV’s 4% decline.
Tesla has traded below its 50-day moving average since late January. However, the stock has been trading above its 200-day moving average since mid-August.
On Jan. 29, TSLA shares fell more than 2% following the release of its Q4 earnings results. Revenue grew 2.1% year over year to $25.71 billion but missed analyst estimates by 6%. The company reported a non-GAAP EPS of $0.73, falling 5.2% short of expectations. Vehicle deliveries totaled 495,570, a 1.5% miss, while automotive revenue came in at $19.8 billion, 7.5% below forecasts. Profitability declined, with gross margin slipping to 16.3% and operating margin dropping to 6.2%. Looking ahead, Tesla plans to launch its unsupervised Full Self-Driving (FSD) and Robotaxi businesses later this year.
Tesla’s rival, Ford Motor Company (F), has had a rough ride. F's shares plummeted 22.6% over the past 52 weeks.
Wall Street analysts are cautious on Tesla’s prospects. The stock has a consensus “Hold” rating from the 39 analysts covering it. The mean price target of $346.14 suggests an upside potential of 22.8%.
