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Tesla Lags Behind Mag 7 ā€” Will Master Plan 4 Spark A Comeback?

Author: Surbhi Jain | June 18, 2024 08:43am

Tesla Inc (NASDAQ:TSLA) is the odd one out in the Magnificent 7, with a year-to-date performance of -24.57% and a one-year performance of -28.06%.

Other Magnificent Seven tech giants ā€” Nvidia Corp (NASDAQ:NVDA), Microsoft Corp (NASDAQ:MSFT) and Meta Platforms Inc (NASDAQ:META) ā€” are riding high with substantial gains.

But Elon Musk-led Tesla struggles to keep pace.

Tesla Stocks Lags The Magnificent Seven

SymbolP/E FWDMarket CapYTD Perf1Y Perf1M Perf
GOOG23.652.19T26.86%44.11%0.84%
TSLA70.18567.71B-24.57%-28.06%5.62%
NVDA50.303.24T164.49%206.80%41.63%
MSFT37.403.29T19.23%30.98%6.70%
META25.161.28T43.13%80.30%7.36%
AMZN40.471.91T21.14%46.67%-0.35%
AAPL32.293.26T12.54%17.17%14.11%

Data Source: Benzinga Pro

The question on every investor’s mind: Can Musk’s Master Plan 4 revive Tesla’s fortunes?

A History of Ambitious Plans

Tesla’s master plans have been pivotal in shaping its trajectory. Starting in 2006, Master Plan 1 laid the foundation with the Roadster, Model S/X and SolarCity acquisition, propelling Tesla into the mainstream.

A decade later, Master Plan 2 aimed at integrating energy solutions, expanding EVs and developing autonomous driving.

Master Plan 3, revealed in 2023, focused on scaling production, advanced AI and exploring new markets.

The Tease of Master Plan 4

Musk recently teased on X (formerly Twitter) that Master Plan 4 is in the works and promises to be “epic.”

While details are scant, speculation abounds. Could it include groundbreaking advancements in AI, further integration of robotics, or a leap into new industries?

At Tesla’s recent shareholder meeting, Musk hinted at new models and emphasized robotics and vehicle autonomy, suggesting these areas may feature prominently in the upcoming plan.

More Details Here: Elon Musk Teases Three New Vehicles At Tesla’s Annual Shareholder Meeting: More Affordable Model Incoming?

What's Next for Tesla?

Tesla's high forward P/E ratio of 70.18 signals lofty expectations, but investors are eager for tangible progress. Recent market movements show a glimmer of hope, with a one-month performance uptick of 5.62%.

However, the road ahead is fraught with challenges, especially as Tesla’s competitors continue to innovate and expand.

Musk's leadership has steered Tesla through turbulent waters before. If Master Plan 4 can deliver on its promises, it might just be the catalyst Tesla needs to regain its momentum and reclaim its position among the market leaders.

For now, the world watches and waits for Musk’s next move, hoping it will spark the turnaround Tesla desperately needs.

Now Read: Tesla Stock Faces Challenges In 2024, 2025: Analyst Highlights This Key Future Item, ā€˜We Still Think TSLA Warrants A Place In Clients' Portfolios'

Posted In: AAPL AMZN META MSFT NVDA TSLA