Should You Buy Tesla Stock Before Robotaxi Day?

2024 has not been kind to Tesla (NASDAQ: TSLA) shareholders. While the S&P 500 has risen by 21%, the electric vehicle (EV) leader's stock has been on a roller-coaster ride that has left it more or less flat year to date due to competition and consumer fatigue. While the stock still enjoys a premium valuation, it is unclear how much longer it will be able to maintain it unless CEO Elon Musk finds a way to reinvigorate the company. Trading at a forward price-to-earnings (P/E) ratio of 85, Tesla stock is valued substantially higher than the broader market's ratio of 24. And its valuation is wildly higher than those of other large U.S. automakers like Ford or General Motors, which have forward P/Es of just 5.3 and 4.7, respectively. In the past, this level of premium could be explained by Tesla's unique EV focus and its higher margins. But those justifications just don't hold as much water anymore.Legacy automakers have gone all-in on electric vehicles, and they are rapidly gaining market share. For example, Tesla's third-quarter deliveries grew by only 3% year over year to 439,975 units (the company doesn't break down its business by country, but the U.S. is its largest market). For comparison, GM's U.S. deliveries of EVs surged by 60% to 32,095. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool