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Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life. This is a special episode as Tracey celebrates the four hundredth episode of the show.

Thanks for tuning in for the last 9 years. The Zacks Market Edge Podcast launched in 2015. It’s been a wild ride ever since.

Thanks for leaving comments and giving it thumbs up reviews on YouTube.

Tesla in the Spotlight

This week, Tracey is joined by Dave Bartosiak, Zacks Stock Strategist, and resident automotive expert, to talk about what is going on at Tesla.

Tesla recently missed on earnings for the third quarter in a row. It also announced a 10% reduction in its workforce and has apparently done additional layoffs in select segments, including the Supercharger group. Several top executives have been laid off or quit this year.

Meanwhile, EV sales have slowed in the US, but also globally. Tesla is feeling it as the Zacks Consensus on revenue for 2024 shows growth of just 3%.

Is This a Buying Opportunity in Tesla or Should You Sell It?

Tesla, Inc. (TSLA - Free Report) has been an extraordinary stock over the last 5 years. It has gained 964% in that period. But after peaking in 2021, the shares have taken a tumble.

Over the last 2-years, Tesla shares are down 37.7%. They also remain weak in 2024, down 27.2% year-to-date.

Is Tesla on sale?

7 earnings estimates have been cut in the last 7 days for 2024 with just one revised higher. This has pushed the Zacks Consensus down to $2.48. That’s an earnings decline of 20.5% as it made $3.12 last year.

But analysts see a rebound in 2025 of 32.5%.

Tesla isn’t cheap, either, with a forward P/E of 74.

Tesla is a Zacks Strong Sell

Tesla is a Zacks Rank #5 (Strong Sell). The Zacks Rank is based on changes to analyst earnings estimates.It has a Zacks Strong Sell recommendation due to the cuts to the earnings estimates. But this is just a short-term recommendation of 1 to 3 months.

Some Tesla shareholders have owned the shares for more than 5 years.

Should you buy more Tesla and add to your position or should you sell your shares and get out?

Video Length: 00:37:34

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