Tesla, Inc. (NASDAQ:TSLA) shares staged a recovery from an eight-month low on Monday, sparking a divergence in opinions between CEO Elon Musk and investors, as well as analysts, regarding the electric vehicle maker’s future outlook.
What Happened: Musk, responding to an X post on Sunday that highlighted Tesla’s annual revenue surpassing entertainment giant Disney Co.’s (NYSE:DIS) in 2023, praised the achievement with a modest “It’s a start.”
Tesla reported $96.77 billion in revenue for 2023, a 19% annual increase, outpacing Disney’s $88.90 billion for the fiscal year ending Sept. 30, 2023.
It’s a start
— Elon Musk (@elonmusk) January 29, 2024
Despite robust revenue growth, Tesla’s performance fell short of Wall Street expectations in the third and fourth quarters. Slowing electric vehicle adoption and economic uncertainties led to lower demand, with near-term guidance indicating a significant drop in 2024 volume growth. The company attributed this to preparations for launching its next-generation budget model EV.
Tesla faced its second consecutive quarterly earnings per share miss, with EV price cuts impacting margins. Meanwhile, Disney grappled with challenges such as depressed park attendance, lackluster streaming business performance, and a less-than-rosy box-office showing despite bringing back longtime CEO Bob Iger who implemented a turnaround plan.
The comparison between Tesla and Disney also comes against the backdrop of Musk taking potshots at the Mouse House for its decision to yank away ads from X in response to Musk liking anti-Semitic posts on the platform.
See Also: Everything You Need To Know About Tesla Stock
The Market’s Response: Following fourth-quarter results, Tesla’s stock experienced a 12% slump on Thursday. This is the longest losing streak since 2016, a period before the launch of the Model 3, a Bloomberg report said. Adam Sarhan, founder of 50 Park Investments, is bearish on the company, the report said. “There’s no floor in this stock in the near term,” he reportedly said. “Investors are scratching their heads. If Tesla is lowering its forecast and is not bullish in the near term, why should investors be bullish.”
The stock built on the gains on Monday before ending up 4.19% at $190.93, according to data from Benzinga…
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