Tesla Is The Worst Performer In The S&P 500 This Year So Far: The Most Innovative Company Of Our Time Is Getting Hit The Hardest

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Tesla is the worst performer this year so far in the S&P 500, down a staggering almost 30%. The most innovative company of our time is getting hit the hardest.

Tesla Down Nearly 30% In 2024

Tesla stock is down nearly 30% this year, in 2024, and is the worst performing stock in the S&P 500. This is the most innovative company of our time and has the most potential for growth. Yet, the market just doesn't see it this way.

There's a huge disconnect between "Mr. Market" and Tesla the company, and I think this is a huge opportunity.

Key Summary Points:

  • Why Is Tesla Down So Much In 2024?
  • What Could Make Tesla Go Back Up?
  • What Opportunities For Growth Does Tesla Have?
  • When Will Tesla Go Back Up?

Why Is Tesla Down So Much In 2024?

Several factors have contributed to Tesla's decline in 2024, shedding light on the complexities of the EV market and broader economic conditions, according to many analysts and market researchers. I believe the market is seeing it this way:

  1. Lower Prices: Tesla has lowered prices, which has reduced margins, causing earnings to decline.
  2. Slower Growth: Tesla yearly delivery growth is slowing, causing it to receive a lower multiple on its valuation.
  3. Competition: There are a host of new EV companies in the U.S. and China offering "competition".
  4. CEO Risk: Some worry that Elon Musk is too political. I think talking about Elon Musk gives people higher views, so they talk about this like it's a problem.

I personally don't see these as issues. Tesla is focused on its long term potential and when there are a hundred million driverless Tesla vehicles on the roads in a decade or two, I don't think anyone is going to care about what deliveries were in 2024...

What Could Make Tesla Go Back Up?

  1. Innovation in Battery Technology: Advancements in battery technology, such as the new CATL LFP battery, or improved lithium-ion formulations, could reduce costs and increase the range and efficiency of Tesla's vehicles, reinforcing its market leadership.
  2. Expansion into New Markets: Entering new geographic markets and segments, such as more affordable vehicle models or commercial vehicles, could open up significant growth avenues for Tesla. Tesla entering India, for example, would be a big deal.
  3. Autonomous Driving Advances: Resolving regulatory and technical challenges with Tesla's FSD technology and achieving reliable autonomous driving capabilities could be a game-changer, offering new revenue streams and enhancing Tesla's brand value. I think this is coming sooner than people realize.
  4. Energy Sector Expansion: Tesla's energy business, including solar panels and Powerwall batteries, represents a substantial growth opportunity, especially as global demand for renewable energy solutions accelerates. It is growing faster than the auto business.
  5. Tesla Bot: Advancements and another AI day showing off the Tesla Bot doing actual labor would demonstrate progress in this area and might make investors willing to take more risk.

You May Also Like: Tesla FSD Is No Longer Beta: Now Called Full Self-Driving (Supervised) - Why This Is A Big Deal

What Opportunities For Growth Does Tesla Have?

Tesla's growth is going to come in these areas:

  1. Lower Cost Vehicles Models: The Model 2 and Model 1 are important vehicles for the future, as is the robotaxi vehicle. These vehicles will end up doing around 80% of Tesla's new vehicle sales in the future.
  2. FSD Progress: Tesla needs to get FSD to the point where a Tesla is now autonomous and doesn't require a driver. And, Tesla needs to take liability for any accidents it is at fault in.
  3. Energy Expansion: Tesla will need to continue to grow the energy business at a rapid rate. Once it catches up to the auto business, investors are going to take note.
  4. Tesla Bot Advancements: Tesla showing the Bot doing actual labor and making it for sales would make investors notice.

When Will Tesla Go Back Up?

For Tesla to go back up and looking at the areas for growth, I think it's going to be a couple of years still. It will happen when we see driverless Tesla's working as ride hailing at a very low cost. That's when the light bulb moment is going to come on for many people.

However, by that time, it will be too late - just like those who waited to invest in something like Bitcoin...

I think it's amusing, actually, that Tesla is the worst performing stock in the S&P 500 in 2024. The fact that the market hates it that much when the company is doing so much good is astounding to me.

For Further Reading: "Most People Still Have No Idea How Crushingly Good Tesla FSD Will Get" Says Elon Musk Stating It Will Be Superhuman To Such a Degree That It Will Seem Strange In The Future That Humans Ever Drove Manually

What do you think about Tesla being the worst performing stock in the S&P 500 so far in 2024? Will this trend continue?

Share this article with friends and family and on social media - or leave a comment below. You can view my most recent articles here for further reading. I am also on X/Twitter where I post more than just articles daily, as well as LinkedIn! Thank you so much for your support!

Hi! I'm Jeremy Noel Johnson, and I am a Tesla investor and supporter and own a 2022 Model 3 RWD EV and I don't have range anxiety :). I enjoy bringing you breaking Tesla news as well as anything about Tesla or other EV companies I can find, like Aptera. Other interests of mine are AI, Tesla Energy and the Tesla Bot! You can follow me on X.COM or LinkedIn to stay in touch and follow my Tesla and EV news coverage.

Image Credit: Tesla, Screenshot

Article Reference: Tesla