Tesla Crushed the Market This Year: Is It a Stock to Own in 2024?

Last year, I wrote that (NASDAQ: TSLA) was a stock that investors should avoid in 2023. Boy, was I wrong about that one. The electric vehicle (EV) leader saw its shares rise 94% so far this year, crushing the S 500, which has returned less than just 20% year to date (YTD). Despite wild antics from CEO Elon Musk -- who is taking a lot of time managing his acquisition of Twitter -- and declining profit margins, investors have shown extreme optimism for Tesla in 2023.

If you didn't own the stock in 2023, you might have some FOMO (fear of missing out) around Tesla right now. Is the stock set to soar yet again in 2024? Let's take a closer look.

A big theme for Tesla in 2023 was cutting prices for its EV product suite, most importantly the Model 3 and Model Y. You can see this show up in the average price of a used Tesla, which has collapsed in value this year. To start 2023, the average used Tesla went for around $55k in the United States, and that has fallen to below $40k as of this writing. This is a 27% decrease YTD compared to just 2.3% for the average used car in its home market.

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Source Fool.com