After electric vehicle (EV) manufacturer Tesla (NASDAQ: TSLA) started to deliver its Cybertruck in late November last year, the long-awaited product has failed to live up to the hyped-up expectations, and the price of Tesla stock has dropped by more than 20% since.
As it happens, Tesla CEO Elon Musk debuted the company’s first electric pickup truck back in 2019, and it took four full years for the futuristic-looking vehicle to finally reach customers on November 30, 2023. However, the Cybertruck has not succeeded in becoming the catalyst for TSLA stock.
Specifically, the Cybertruck seems to could not have debuted at a worse time, coinciding with concerns regarding its pricing, as well as its practicality and functionality as a pickup truck due to long charging times and poor performance on snowy road conditions despite its touted four-wheeled capability.
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Tesla stock price analysis
Indeed, since November 30, 2023, the price of Tesla stock has declined from $240.07 to the present $189.56, which indicates a 21.04% drop over the last 10 weeks, albeit recording a slight recovery in the past week, during which its price increased by 2.57%, according to the data retrieved on February 9.
Meanwhile, Tesla has also issued a disappointing earnings report for the fourth quarter of 2023, which the company’s biggest bull, Wedbush Securities’ Daniel Ives, referred to as a ‘train wreck,’ and which has led investors to start second-guessing the company’s prospects as an automaker.
As Ives explained in a note:
“We were dead wrong expecting Musk and team to step up like adults in the room on the call and give a strategic and financial overview of the ongoing price cuts, margin structure, and fluctuating demand. (…) Instead, we got a high-level Tesla long-term view.”
And nothing illustrates its lack of success better than the fact that Tesla managed to sell only one car in South Korea in January 2024 – its Model Y SUV – in what was the company’s worst month since July 2022, when it failed to sell a single EV in the entire East Asian country with 52 million people.
On top of that, the beaten-down stock is displaying negative signs in short, medium, and long-term trends, performing worse than 76% of all assets in the stock market in the last year, as well as trading in the lower part of both its 52-week range and its last-month range.
On the other hand, signs of hope include a healthy liquidity with 114.2 million shares traded per day on average and the fact that TSLA is currently outperforming 62% of the 41 stocks in the automobile industry, demonstrating the necessity of proper research before investing in any asset.
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