Tesla's Growth Engine Stuttering? Deliveries Miss Looms As Analyst Questions High Valuation: 'Looks Vulnerable'
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) is anticipated to report first-quarter deliveries that may significantly miss forecasts, with estimates around 425,000 units versus the consensus of 468,000. Gary Black of Future Fund highlighted concerns over Tesla's volume growth and its high valuation, noting the company's P/E ratios for 2024 and 2025 appear vulnerable without significant earnings or volume growth. Future Fund Active ETF (NYSE:FFND) has reduced its Tesla exposure. Tesla's stock has declined over 31% year-to-date.
March 25, 2024 | 5:33 am
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NEUTRAL IMPACT
Future Fund Active ETF, having reduced its exposure to Tesla, might see its performance influenced by Tesla's stock movements and the broader market's reaction to Tesla's delivery numbers and valuation concerns.
While FFND has reduced its exposure to Tesla, its performance is still partially tied to Tesla's fortunes due to its previous holdings. The ETF's reaction may be more muted compared to direct Tesla stock movements, but investor sentiment towards Tesla could still influence FFND's performance.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
Tesla's anticipated Q1 delivery miss and concerns over its valuation and growth prospects could pressure its stock price in the short term.
The anticipated miss in Q1 deliveries and the discussion around Tesla's high valuation and vulnerability in P/E ratios for the coming years could lead to negative investor sentiment. This, combined with the year-to-date decline of over 31%, suggests a potential short-term downward pressure on the stock.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100