After delivering game-changing returns to shareholders since its initial public offering (IPO), electric vehicle (EV) market leader Tesla (TSLA) has trailed the broader markets by a wide margin in the last three years. Tesla stock touched all-time highs in November 2021, and has since underperformed significantly.
While major equity indices are hovering close to record levels, Tesla stock is down 44% from all-time highs, valuing the company at $740.1 billion by market cap. Let’s see if investing in the EV manufacturer is a good choice right now.
Tesla Tanks After Q2 Results
Shares of Tesla fell 12% on July 24 following its Q2 results, after the company reported revenue of $25.5 billion and adjusted earnings per share of $0.52. Comparatively, analysts forecast sales at $24.77 billion and earnings at $0.62 per share for the June quarter.
While sales rose by 2% year over year, automotive revenue was down 7%….
