Tesla's Stock Oversold and Due for Rebound, Analysts Warn of Further Decline

Despite Tesla's significant stock price decline in 2024, the company's stock hasn't become significantly cheaper by a key metric. Tesla's forward price-earnings ratio is 55.0 as of March 15, down from 65.2 on Feb. 29, but still above previous levels. Analysts have slashed 2024 earnings per share estimates to $2.62, resulting in a 2024 P-E ratio of 62.4, well above the range for the past several months. The same trend holds for 2025, with analysts cutting earnings per share estimates to $4.06. Tesla's valuation remains far above that of other profitable automakers and EV players, indicating that the stock still isn't cheap.