Jan 4, 2023 - Economy

Tesla stock plunge intensifies outlook divide

Data: YCharts; Chart: Axios Visuals

Few stocks and companies are as divisive as Tesla. Its dramatic 65% plunge last year, its worst ever, has only intensified the debate.

Why it matters: Investors in the past largely valued Tesla in a category of its own — neither purely tech nor auto. But with legacy car brands catching up and global market and economic conditions working against Tesla right now, the premium has steadily gotten smaller.

State of play: ARK CEO and chief investment officer Cathie Wood thinks the stock has “miles to run,” reaching potentially $1,500 in the next five years.

  • In an interview with Barron's before the new year and Tesla's fourth quarter delivery report, she points to lower prices, the company making cheaper batteries and the prospect of a fully autonomous taxi service.

The other side: If investors valued the company like a traditional automaker as competition for its main EV products grow, Tesla has a lot further to fall.

  • Tesla “is still tremendously overvalued” despite the plunge in its stock price compared to Ford and General Motors, Greenwich Wealth Management CIO Vahan Janjigian told CNBC at the end of last year.

What to watch: Tesla will report full year 2022 financial results on January 25.

Go deeper

Tesla tops EV marketshare in U.S.

The real-world effect of Elon Musk's online drama

Go deeper