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However, Musks role in the government has attracted sharp criticism and it has translated into struggles for Tesla.
Vandalism has been soaring against Tesla vehicles, but it isnt just the bad actors.
Teslas sales have been dipping and that prompted President Trump to give the carmaker a boost.
Lets dive into this below.
Teslas automobile sales only increased by 2% year-over-year inQ3 2024.
Growth rates have gotten worse, with automobile sales dropping by 8% year-over-year inQ4 2024.
Also, Tesla needs sales in China to pick up again and I dont see any signs of that.
Tesla has been battling tougher competition in China and Europe.
That extra competition has given consumers more options.
Some conservatives have been buying Teslas to support Musk, but most conservatives have already preferred gas-powered vehicles.
Republicans are highly unlikely to buy electric vehicles based on a recentNPR survey.
Stanzione summarized the results.
Most Republicans are not Tesla drivers and prefer ICE (internal combustion engine) vehicles.
The Stock Is Still Overvalued
Investors have been saying Tesla is overvalued for years.
As far as the stock, even after the recent 40% fall, its grossly overvalued.
I believe the stock could drop another 50% in the next 18 months.
It also does not pay a dividend.
I can buy Toyota on less than nine times earnings and get a 3% yield.
Rising competition and slow revenue growth can lead to Teslas stock trading more in line with other automakers.
Tesla can deliver exceptional returns for investors if its robotaxis and Optimus humanoids deliver on their high expectations.
However, investors have to consider whats in front of them right now.
Staying on the sidelines and waiting for a better entry may bethe smart play.
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