Should you buy Tesla stock? (January 2024)

Published first at https://www.3minutebreakdowns.com Tesla stock analysis. Ticker: $TSLA Tesla reported earnings last week and the stock dropped around 12% giving the company a market value of $640 billion dollars. With $29 billion of cash on its balance sheet and 5 billion of debt, the enterprise value is $616 billion. Not long before this announcement, some people were talking up the prospect of Tesla becoming a $10 trillion dollar company, helped by a rollout of humanoid bots and artificial intelligence. Those predictions now look poorly timed because this was a disappointing earnings report from Tesla. Automotive revenues rose less than 2% year over year and profit margins have tanked. Gross margin in the latest quarter was 17.6%, down from 24% one year ago and operating margins fell 47% to 8.2%. That’s now lower than legacy automaker Toyota Motors. Company outlook was also disappointing. Tesla said that vehicle growth would slow again this year and on the company conference call Elon Musk said that without tariffs, Chinese manufacturers would “pretty much demolish most other car companies in the world”. Long time Tesla bull Dan Ives called the Tesla call a train wreck. #teslastock #investing #stockstowatch