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Tesla’s Sales Are Expected To Decline: A Once-Unthinkable Prediction

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Tesla's Sales Are Expected To Decline: A Once-Unthinkable Prediction

(CTN News) – This is not to say that Tesla Inc. is no longer one of the hottest stocks in the world. The CEO of Tesla, Elon Musk, has stated as much in his own words.

In spite of this, even by that new standard – with growth forecasts on Wall Street sinking rapidly as well – the grim sales prediction made on Wednesday by a key Tesla analyst was still a surprise.

According to Wells Fargo’s Colin Langan, there will be no growth in sales volumes for the electric-vehicle manufacturer for this year. It’s going to get worse by the year 2025: volumes are expected to decline even more.

As a result, the company’s shares dropped in value by as much as 4.1% on Wednesday, dropping to a 10-month low, a significant decline. Despite a strong rally that has pushed the S&P 500 Index up 8.5% this year, the stock of the company has fallen 31% just this year alone.

In my opinion, the answer is clear: Tesla’s ability to grow as fast as it has in the past is no longer guaranteed, despite its high valuation.

In spite of the fact that the company’s stock still trades at a multiple that is significantly higher than that of other mega-cap high-flyers, the company’s revenues and profit have slowed significantly since the end of last year as its growth in revenues and profit has slowed.

As of today, the market is voting in favor of the possibility that Tesla is not justified in its high valuation,” Adam Sarhan, founder and CEO of 50 Park Investments, explained in an interview.

Currently, the market is controlled by the sellers, and bulls need a catalyst to get enthusiastic about the market again.

Since the beginning of March, Tesla has been on Wall Street’s radar after disappointing numbers from China, disappointing data from European nations, and a production disruption at its Berlin factory pointed to a first-quarter delivery that was far below analysts’ average expectations.


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