{"id":113853,"date":"2024-10-14T00:43:45","date_gmt":"2024-10-13T17:43:45","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=113853"},"modified":"2024-10-14T00:43:45","modified_gmt":"2024-10-13T17:43:45","slug":"tesla-stock-selloff-after-robotaxi-event-could-be-just-the-beginning-pros-warn","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=113853","title":{"rendered":"Tesla stock selloff after robotaxi event could be just the beginning, pros warn"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p>Fundamentals over hype.<\/p>\n<p>Indeed that\u2019s the lesson for Tesla (<a data-i13n=\"cpos:1;pos:1\" href=\"https:\/\/finance.yahoo.com\/quote\/TSLA\/\" data-ylk=\"slk:TSLA;cpos:1;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">TSLA<\/a>) investors after the EV maker\u2019s disappointing <a data-i13n=\"cpos:2;pos:1\" href=\"https:\/\/finance.yahoo.com\/video\/teslas-robotaxi-event-kick-off-134745662.html\" data-ylk=\"slk:robotaxi event;cpos:2;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">robotaxi event<\/a> exposed a disconnect between the stock\u2019s lofty valuation and reality.<\/p>\n<p><a data-i13n=\"cpos:3;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/stunningly-absent-on-detail-tesla-robotaxi-event-leaves-investors-wanting-more-170122849.html\" data-ylk=\"slk:A lack of details;cpos:3;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">A lack of details<\/a> surrounding the rollout plan and regulatory approval, plus no mention of a more affordable regular EV left Wall Street wanting more.<\/p>\n<p>CFRA analyst Garrett Nelson likened the event to \u201cwatching a movie with a lot of plot twists and special effects, and at the end, you&#8217;re walking out scratching your head.\u201d<\/p>\n<p>Safe to say analysts \u201cscratching their heads\u201d was probably not the reaction Musk was hoping for when showing off the Cybercab and Robovan concepts. Now, the big issue for investors is reevaluating Tesla\u2019s stock price.<\/p>\n<p>On Friday, more than $60 billion was wiped off of Tesla\u2019s valuation in a selloff, a sharp reversal from the stock\u2019s recent momentum. Shares had soared over 70% since Musk started touting AI in April. The rally brought Tesla\u2019s market value to over $760 billion ahead of the robotaxi announcement\u2014 more than 14 times GM\u2019s (<a data-i13n=\"cpos:4;pos:1\" href=\"https:\/\/finance.yahoo.com\/quote\/GM\" data-ylk=\"slk:GM;cpos:4;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">GM<\/a>) market cap and nearly 18 times Ford\u2019s (<a data-i13n=\"cpos:5;pos:1\" href=\"https:\/\/finance.yahoo.com\/quote\/F\" data-ylk=\"slk:F;cpos:5;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">F<\/a>).<\/p>\n<p>Nelson, who had been a longtime bull on Tesla, warned Friday\u2019s drop \u201ccould be\u201d just the beginning as Wall Street reassesses.<\/p>\n<p>\u201cThere is an increasing disconnect between the stock\u2019s lofty valuation and the reality that Tesla\u2019s earnings growth has hit a wall,\u201d he tells me, noting that intermediate-term growth drivers are \u201cunclear.\u201d<\/p>\n<p>In a note to clients, Bernstein\u2019s Toni Sacconaghi reiterated his belief that Tesla\u2019s valuation is disconnected from fundamentals, writing the robotaxi event was \u201cshort on immediate deliverables or incremental revenue drivers.\u201d<\/p>\n<p>Sacconaghi estimated that Tesla\u2019s automotive business is worth around $200 billion, suggesting that nearly $600 billion of its valuation hinges on its less proven ventures, including Full Self Driving (FSD), robotaxis, and humanoid robots.<\/p>\n<p>As my colleague Akiko Fujita <a data-i13n=\"cpos:6;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/can-robotaxis-turn-a-profit-experts-are-skeptical-as-tesla-prepares-to-unveil-plans-123012351.html\" data-ylk=\"slk:wrote;cpos:6;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">wrote<\/a>, robotaxis are a costly venture, and may be years away from becoming profitable.<\/p>\n<p>The absence of near-term catalysts comes at an already challenging time for Tesla. Lackluster demand and <a data-i13n=\"cpos:7;pos:1\" href=\"https:\/\/finance.yahoo.com\/video\/gms-mary-barra-going-evs-095516500.html\" data-ylk=\"slk:increased EV competition from the likes of GM;cpos:7;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">increased EV competition from the likes of GM<\/a> have pressured sales and margins in recent quarters, and it\u2019s a trend that pros warn is unlikely to change anytime soon.<\/p>\n<p>In Q2, the company reported operating margins of 6.3%, compared to 14.6% just two years earlier.<\/p>\n<p>Guggenheim\u2019s Ron Jewsikow, who sees fair value around $153 per share, <a data-i13n=\"cpos:8;pos:1\" href=\"https:\/\/finance.yahoo.com\/video\/teslas-robotaxi-event-why-analyst-153837406.html\" data-ylk=\"slk:told me;cpos:8;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">told me<\/a> that post-robotaxi event, investors will \u201creturn to focusing on the fundamentals of the business,\u201d which he characterized as \u201cquite poor.\u201d<\/p>\n<p><button class=\"link caas-button readmore-button-finance collapse-button readmore-button-class\" data-ylk=\"elm:readmore;slk:Story continues\"><span class=\"readmoreButtonText\">Story continues<\/span><\/button><\/p>\n<p>\u201cA business trading at 100 times next year&#8217;s earnings, with little to no free cash flow, is really difficult to underwrite,\u201d he added.<\/p>\n<p>With its shares falling 9% on Friday and down over 17% in the past year, it\u2019s safe to say Tesla has a lot to prove when it comes to the fundamentals. Its next big test will be its third-quarter earnings, scheduled for after the bell on October 23.<\/p>\n<p>Will it be more hype than fundamentals? Buckle up!<\/p>\n<figure class=\"caas-figure\">\n<div class=\"caas-figure-with-pb\" style=\"max-height: 622px\">\n<div>\n<div class=\"caas-img-container caas-img-loader\" style=\"padding-bottom:65%\"><img decoding=\"async\" class=\"caas-img caas-lazy has-preview\" alt=\"\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/yQstaLQvAeifNJfxPVlLuQ--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTYyMg--\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2024-10\/322afce0-881a-11ef-a532-dc284a937e8c\"\/><img decoding=\"async\" alt=\"\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/yQstaLQvAeifNJfxPVlLuQ--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTYyMg--\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2024-10\/322afce0-881a-11ef-a532-dc284a937e8c\" class=\"caas-img\"\/><\/div>\n<\/div>\n<\/div>\n<\/figure>\n<p><a data-i13n=\"cpos:9;pos:1\" href=\"https:\/\/www.yahoo.com\/author\/seana-smith\/?.tsrc=fin-srch\" data-ylk=\"slk:Seana Smith;cpos:9;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><em>Seana Smith<\/em><\/a><em> is an anchor at Yahoo Finance. Follow Smith on Twitter <\/em><a data-i13n=\"cpos:10;pos:1\" href=\"https:\/\/twitter.com\/SeanaNSmith\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:@SeanaNSmith;cpos:10;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><em>@SeanaNSmith<\/em><\/a><em>. Tips on deals, mergers, activist situations, or anything else? Email seanasmith@yahooinc.com.<\/em><\/p>\n<p><a data-i13n=\"cpos:11;pos:1\" href=\"https:\/\/finance.yahoo.com\/tech\" data-ylk=\"slk:Click here for the latest technology news that will impact the stock market;cpos:11;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><strong>Click here for the latest technology news that will impact the stock market<\/strong><\/a><\/p>\n<p><a data-i13n=\"cpos:12;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/\" data-ylk=\"slk:Read the latest financial and business news from Yahoo Finance;cpos:12;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><strong>Read the latest financial and business news from Yahoo Finance<\/strong><\/a><\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/finance.yahoo.com\/news\/tesla-stock-selloff-after-robotaxi-event-could-be-just-the-beginning-pros-warn-155630131.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fundamentals over hype. Indeed that\u2019s the lesson for Tesla (TSLA) investors after the EV maker\u2019s disappointing robotaxi event exposed a disconnect between the stock\u2019s lofty valuation and reality. A lack &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=113853\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-113853","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/113853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=113853"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/113853\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=113853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=113853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=113853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}