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Tesla (NASDAQ:TSLA) ended Monday’s trading session down 3.65% to push the year-to-date decline for the electric vehicle stock to over 27%.
There was no single factor accounting for the Monday drop, although some traders are attaching significance to a report from German publication Handelsblatt indicating that IT giant SAP is removing the electric vehicle maker from the list of its car suppliers. A top SAP executive said that Tesla’s price fluctuations on models make corporate planning more difficult for large fleet orders and creates higher risk. Tesla (TSLA) is also still being sized up differently after its deliveries growth outlook for 2024 underwhelmed and shifted sentiment. HSBC thinks Tesla (TSLA) may be losing some of its baked-in premium for the next-gen businesses that are percolating. “Our concern relates to the uncertainty of timing and commercialization for Tesla’s varied ideas (Dojo, FSD, Optimus, etc) from which it derives a significant share of its valuation,” warned HSBC analyst Michael Tyndall.
Shares of Tesla (TSLA) ended the day lower than where they stood one year ago and are more than 50% below the all-time high. However, the market cap on Tesla (TSLA) is still bigger than the valuations of General Motors (GM), Honda (HMC), Ford Motor (F), and Honda Motor (HMC) combined. The Seeking Alpha Quant Rating on TSLA is flashing Hold. Strong factor grades for profitability and growth are offset by a low factor grade for momentum. In terms of quantitative analysis, Tesla (TSLA) ranks 14th out of 33 stocks in the automobile manufacturing sector.