ETFs That Gained on Mag 7's Worst Day in a Year
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 12 2024
0mins
Should l Buy TSLA?
Source: NASDAQ.COM
- Tech Stocks Performance: Big Tech stocks like NVIDIA and the "Magnificent 7" group, including Tesla, had a significant drop in value, with the Nasdaq Composite slipping almost 2% due to various factors.
- Market Response to Inflation and Rate Cuts: Following a decrease in the Consumer Price Index (CPI) and talks of potential rate cuts by the Fed, investors shifted focus to rate-sensitive sectors like Real Estate and Utilities, anticipating benefits from a low-rate environment.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 417.070
Low
25.28
Averages
401.93
High
600.00
Current: 417.070
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Employee Incentives: He noted that employees at both Tesla and SpaceX receive stock and options, which not only enhances employee engagement but also boosts the overall value creation capacity of the companies.
- Market Predictions: Following the merger of SpaceX with Musk's AI firm xAI, the market has raised the odds of him reaching a $1 trillion net worth by 2027 to 78%, reflecting strong investor confidence in his future growth potential.
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- Source of Wealth: Musk stated that his $849.3 billion fortune is overwhelmingly tied to his ownership stakes in Tesla and SpaceX, with less than 0.1% in cash, indicating that his wealth is primarily derived from equity rather than cash flow.
- Employee Incentives: He noted that employees at both Tesla and SpaceX receive stock and options, which not only enhances employee engagement but also boosts the overall value creation capacity of the companies.
- Market Predictions: Following the merger of SpaceX with Musk's AI firm xAI, the market has raised the odds of him reaching a $1 trillion net worth by 2027 to 78%, reflecting strong investor confidence in his future growth potential.
- Tesla Performance: Tesla's recent quarterly earnings of 50 cents per share exceeded analyst expectations of 45 cents, with quarterly revenue reaching $24.9 billion, showcasing the company's robust performance and ongoing growth potential in the electric vehicle market.
See More
Tesla Shifts Full Self-Driving to Subscription Model
- Subscription Model Shift: Tesla (TSLA) has launched a full self-driving (FSD) subscription service in core markets like the U.S. and Canada, charging approximately $99 per month instead of a one-time fee of nearly $8,000, aiming to lower entry barriers and enhance recurring software revenue.
- Existing User Protection: Current owners who have paid for FSD will retain lifetime access, a strategy that not only safeguards existing customers' investments but also has the potential to attract new users, thereby expanding Tesla's customer base.
- Technical Foundation and Market Positioning: FSD is built on Tesla's Autopilot foundation, incorporating features like adaptive cruise control and lane-keeping; although classified as a Level 2 driver-assistance system, its long-term goal is to achieve higher levels of autonomy, enhancing competitive positioning in the market.
- Future Growth Potential: Analysts view the high-margin software revenue from FSD as a stabilizing factor for Tesla amid challenges in other business areas, while its integration with future robotaxi networks is expected to further enhance the company's long-term value.
See More
Tesla Reaffirms Cybercab Production Timeline Amid Demand Concerns
- Production Timeline Reaffirmed: Elon Musk reiterated that Tesla's Cybercab is set to begin production in April 2025 at the Texas gigafactory, aiming for a fivefold increase in production efficiency through a 'radically redesigned' manufacturing process, although initial output may be slow, with a long-term goal of producing one vehicle every 10 seconds.
- Demand Concerns Raised: Gary Black from Future Fund expressed skepticism about the Cybercab's market demand, arguing that a two-seat, fully autonomous vehicle is inconsistent with typical consumer purchasing habits, which could impact Tesla's long-term volume assumptions, especially since this segment represents a small portion of global auto demand.
- Robotaxi Strategy: The Cybercab is positioned as a core product in Tesla's push into autonomous driving, robotics, and AI, intended to complement the existing fleet of Model Y robotaxis operating in Texas, further expanding its fully autonomous driving testing capabilities.
- Market Reaction: Despite facing market skepticism, Tesla's stock rose 0.2% in after-hours trading on Monday, with a 17% increase over the past 12 months, indicating sustained investor confidence in Tesla's future developments.
See More
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- Significant AI Growth: Broadcom's AI semiconductor revenue surged 74% year-over-year in the latest quarter, with projections indicating it will reach $8.2 billion in Q1, showcasing strong market demand and growth potential.
- Record Backlog: The backlog for Broadcom's AI switches has exceeded $10 billion, reflecting the company's critical role in AI data center buildouts and strong market confidence.
- Product Differentiation: Broadcom has launched the industry's first Wi-Fi 8 access point and switch system, aimed at enhancing security and speed for enterprises using AI, thereby further solidifying its market position.
- Competitive Strategy: Broadcom's custom XPUs complement Nvidia and AMD's general-purpose GPUs, allowing the company to grow rapidly in specific niches while avoiding the pressures of direct competition.
See More
Tesla's AI Prospects Look Bright but Risks Abound
- Analyst Optimism: As Tesla advances in self-driving and robotics, more analysts are becoming bullish, with projections suggesting robotaxi revenue could reach $250 billion by 2035, indicating significant market potential.
- Financial Improvement: Tesla's gross margin rose to 20.1% in Q4 2025, the highest in two years, and its cash and investments totaled $44 billion, a 20% increase from 2024, providing financial backing for future investments.
- Market Challenges Intensify: Despite the positive outlook, Tesla's sales fell by 3% in 2025, marking its first annual decline, while earnings plummeted 47% year-over-year to $1.08 per share, highlighting risks from weakened consumer demand and brand damage.
- Valuation Risks: With a price-to-earnings ratio of 393, significantly above the tech sector average of 43, investors face high risks buying Tesla stock at current prices, suggesting caution until the company's financial situation improves.
See More
Global Battery Energy Storage Market Set for Rapid Growth
- Market Growth Potential: The global battery energy storage system market is projected to grow at a CAGR of 15.8%, expanding from USD 50.81 billion in 2025 to USD 105.96 billion by 2030, reflecting a surge in renewable energy demand and rising electricity consumption.
- Technology Advancement Drivers: The decline in costs of lithium-ion and other advanced battery technologies makes energy storage solutions more economically viable, while supportive government policies and incentives accelerate market deployment.
- North America Market Outlook: North America is expected to capture a significant share of the battery energy storage market by 2030, driven by increased renewable energy projects and a focus on grid reliability and resilience, facilitating large-scale storage implementations.
- Utility Application Dominance: The utility application segment is projected to account for the largest share of the battery energy storage market during the forecast period, stabilizing voltage and frequency to ensure reliable grid operations and supporting renewable energy integration.
See More
