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Tesla (TSLA) recently announced an expansion abroad that will redefine its footprint in the Middle East. The company has revealed that it will launch sales in Saudi Arabia from April 10, marking a business milestone forTesla as it accesses one of the last major oil economies with largely untapped electric vehicle potential.

The timing couldn’t be better. With EV penetration in Saudi Arabia at a mere 1% of total car sales, the market is ready to be disrupted. The Kingdom has made considerable progress in the direction of diversification, including green energy, in its Vision 2030 initiative. The addition of Tesla adds another layer of competition to a market already with BYD (BYDDY) and Lucid (LCID) in place, the latter backed by Saudi Arabia’s Public Investment Fund (PIF). 

For enthusiasts of TSLA stock, the Saudi debut offers a new bullish narrative outside production levels and earnings calls.

About Tesla Stock

Tesla (TSLA) manufactures electric vehicles, energy storage devices, solar panels and accessories, and humanoid robots, among other things. With a market capitalization in excess of $833 billion, Tesla still leads the global EV market in terms of volume and innovation.

TSLA stock has had a wild 12-month ride. The stock has traded between $138.80 and $488.54 over the past 52 weeks. The stock is down roughly 33.5% year to date on concerns regarding margin compression and increased competition in China, as well as a general selloff in tech stocks. The S&P 500 Index ($SPX) is down 4.2% in the same timeframe.

Valuation metrics reflect Tesla’s premium growth positioning, but investors are also cautious. The stock trades at a trailing price-earnings ratio of 128.56x and a forward price-earnings ratio of 109.87x, far above sector averages. Its price-sales ratio sits at 8.68x, and its price-book ratio at 11.52x. While richly valued, bulls argue that Tesla’s future growth in robotics, autonomy, and energy justifies the premium.

Tesla Misses Q4 Estimates

Tesla released fourth-quarter 2024 earnings results with EPS at $0.73 on Jan. 29. This came in lower than the analyst estimate of $0.76 and hit investor sentiment as the company also reported its first annual decline in vehicle deliveries. 

The revenue in the quarter was $25.7 billion, below estimates for $27.3 billion, and net income was $7.18 billion. 

For its upcoming first quarter report, analysts are calling for earnings per share of $0.49 versus $0.35 in the same quarter last year, a 40% growth on an annual basis. Second-quarter expectations place EPS at $0.54. Total 2025 earnings are forecast to be $2.40 per share, up 17.65% from 2024 levels of $2.04. 

Analysts Predict What to Expect from Tesla Stock

Analysts have Tesla at a “Hold” rating currently, based on 41 opinions tracked by Barchart. The average rating on the stock has edged up in the past three months from 3.18 to 3.37. 

The breakdown now has 16 rating the stock a “Strong Buy,” three rating it a “Moderate Buy,” 12 holding “Hold” ratings, and 10 rating it a “Strong Sell.” The breakdown shows a growing, if tentative, shift in the direction of a more favorable opinion among Wall Street insiders.