Tesla faces potential decline in annual deliveries for first time since 2011
fool.com —
Tesla is facing challenges with weak demand and increased competition in the electric vehicle market. Its stock has dropped 39% since its peak in 2021, and the company reported a 6.5% decline in EV deliveries in the first half of 2024. For the first time since launching the Model S in 2011, Tesla's annual deliveries may decrease in 2024. The company needs to deliver over 514,000 cars in the final quarter to surpass last year's total, which is a significant challenge. Tesla's stock is currently trading at a high price-to-earnings ratio of 70, much higher than its peers. Analysts predict a decline in earnings per share for 2024, raising concerns about the stock's valuation amid its core business struggles.