The stock price of Tesla, the leading electric vehicle company in the United States, has been sluggish since last week. The stock declined further as concerns about performance grew following news that Tesla's annual vehicle deliveries decreased compared to the previous year.
However, Tesla is still Tesla. Some investors are pondering whether this period should be seen as an opportunity for low-cost buying. If there is anxiety about purchasing stocks immediately due to the potential for additional declines, it might be wiser to decide on investments after checking Tesla's fourth-quarter earnings for 2024, which will be announced later this month, along with the earnings of major technology corporations in the U.S.
Overnight, Tesla's stock dropped more than 7% during the trading session after news that annual vehicle deliveries decreased for the first time in 10 years. Tesla reported that it delivered 1,789,226 vehicles in 2024, a decrease of 19,355 vehicles from the 1,808,581 it delivered in 2023. This figure also fell short of the market expectation of 1.8 million.
Concerns about a 'stock price peak theory' were already emerging in the stock market regarding Tesla. After Donald Trump was elected President of the United States on Nov. 5 last year, Tesla's stock surged by 66.3%, rising from $242.84 to $403.84 in just two months. Despite the sluggish state of the electric vehicle market, the close relationship between Elon Musk, CEO of Tesla, and President-elect Trump linked Tesla as a 'Trump beneficiary stock,' leading to a rapid rise in stock price in a short period.
However, expectations for Trump beneficiary stocks started to wane by the end of December. According to the Korea Securities Depository, from December 1 to 27 last year, domestic investors purchased Tesla stocks worth $661.95 million (approximately 975 billion won), maintaining the top rank in net purchases, but during this week (from Dec. 30, 2024, to Jan. 2, 2025), net purchases were limited to $24.76 million (approximately 36.5 billion won). With the increase in vehicle delivery growth also faltering, the decline in stock price has accelerated. In the past five trading days, Tesla's stock has fallen nearly 20%.
Nonetheless, some analysts suggest that Tesla's current stock weakness may be a short-term adjustment process. There are sufficient growth drivers expected this year with the anticipated release of low-cost electric vehicles and autonomous robo-taxi services. The U.S. financial media outlet Barron's noted, "While the figures on electric vehicle deliveries are important, investors are likely to focus more on low-cost vehicles and robo-taxi services."
If you want to better understand stock price trends and invest, it may be helpful to check the detailed performance and progress on new businesses during Tesla's fourth-quarter earnings announcement for 2024, which is scheduled for 7:30 a.m. on the 30th of this month, Korean time.
It is also important to keep an eye on the upcoming earnings of other major U.S. corporations this month. Although specific dates have not yet been released, companies such as Microsoft, Apple, Amazon, Netflix, and Goldman Sachs are expected to announce their earnings between the end of this month and early next month. If the earnings of technology corporations are positive, it could improve investor sentiment toward Tesla; conversely, if the earnings of other technology corporations fall short of expectations, Tesla's stock price could also face downward pressure.
An official in the financial investment industry said, "Starting in mid-January, the earnings of U.S. corporations will start to come out, and since the market's expectations for the beginning of the year will also be reflected in the stock market, the direction of Tesla's stock price will become clearer."