Tesla Inc. is a global leader in the automotive and clean energy industry and is famous for its charismatic CEO, electric vehicles, and self-driving technology. With repeated excellent performances in the stock market (soaring 854% in the last five years), the company has reached remarkable heights, hitting the $1 trillion market capitalization mark in 2021 and having $788.13B in 2024. Yet, like all highly valuable shares, investors must consider when the best time is to buy, sell, or invest in other shares.

Tesla: Rising Competition in The EV Market

Tesla (Nasdaq: TSLA) had a good year, closing with over +100% for 2023, but the company has struggled in 2024, crashing 30% as of July, with the main reason being lower demands and a steep rise in competition, mainly from Chinese manufacturers. This has pushed Tesla to lay off over 10% of its employees; it's predicted to lose over 6,000 jobs or positions across California, Texas, and New York in the coming months. At the time of writing, TSLA is worth $251.52, trading on online trading platforms and stock markets globally.

China, which is Tesla's most important market (bringing in nearly a quarter of Tesla's total revenue from China), has seen an uptick in local and foreign EV companies competing for sales amidst growing interest in the industry. China houses Tesla's massive manufacturing factor, which rolled out over 900,000 cars in 2023.

The increased shift towards hybrid vehicles also threatens companies that make electric-only vehicles. Sales of hybrid vehicles rose 46% year-on-year (YoY) for 2023–2024 and have significantly outpaced sales of electric cars, with Chinese companies leading the race.

Right Time To Buy or Not?

Despite its struggles in 2024 and analysts predicting a 5.1% drop in revenues, Tesla cut prices in major markets and generated $21.3 billion in revenue for Q1 2024. Although this was slightly less than expected, the company has remained relatively stable amidst its troubles. For seasoned investors and traders, Tesla's market challenges present an opportunity to stack up TSLA shares as they are now at the cheapest in over six months.

For investors considering Tesla shares, the long-term goal is to ride through turbulent periods until the shares pick up and deliver profits. Tesla's fundamentals are strong, and the visionary CEO regularly shares targets, such as AI, that rise beyond EVs. The company's large customer base, strong brand, and ability to scale products at all levels are important factors to its future success. This aligns with Cathie Wood's TSLA predictions.

Wood has been bullish on the TSLA shares with her Ark Invest firm and recently updated its predicted price to $2,600 by 2029. The firm suggests Tesla's autonomous driving and robotaxi products will supply the needed thrust to achieve that price target over the next five years. TSLA shares are still worth buying in 2024; inventors can explore the price fall as a retracement to add more shares.

But if you don't share Wood's confidence and want to explore alternatives, there are several other low-risk shares that you can explore for your investment portfolio in 2024. 

Tesla Shares Alternatives

Here are some other low-risk shares worth considering:

British American Tobacco (BTI)

Although the demand for standard combustible products declined over Q1 2024, Vuse, the British American Tobacco brand, had a global share of 41.1% and 51.5% in the U.S. and positive results across France, Germany, and Poland for the same period. The company believes that non-combustible products stimulate revenue growth and increase share prices. With a £54.48 billion market capitalization and 9.57% dividend yield, the share has been on a steady climb over the last six months (up 4.41%).

Ford Motor Company (F)

Ford is another global leader in the EV industry, second only to Tesla for EV sales in 2023. The company is a less volatile option for investors looking for alternative TSLA shares to add to their portfolio. Ford has a $51.26 billion market capitalization and a 4.67% dividend yield. The company has divided its operations into Automotive, Mobility, and Ford Credit, marking its drive to diversify revenue in the EV industry. F is up 10.6% on the six-month chart, 6.56% on the monthly chart, and 6.64% year-to-date.

Duolingo Inc. (DUOL)

With a market capitalization of $8.33 billion, Duolingo has become one of the most valuable language-learning names globally. Despite being down 14.05% year-to-date, DUOL is up 27.71% on the 1-year chart and has an expected revenue of 27/8% and an earnings growth rate of over 100% for 2024. Analysts predict a share price between $254 and $275, a potential 31.84% jump from its last price of $193. The company may consider adding more subjects and products to boost revenue, but the share has doubled over the past year, rising 112% as of 24 February 2024.

ON Semiconductor Corp (ON)

The increased demand for EV and hybrid vehicles has impacted the semiconductor market, where they source electronic chips integral to EVs. ON has a ‪$31.57 billion market capitalization and a 14.84 EPS (TTM). The company has seen its annual performance rise steadily from 2019 and is expected to keep pace in 2024. The share is down 11.34% year-to-date and 3.65% on the six-month chart, but it is up 1.28% on the monthly chart.

Best Value Stocks for July 2024

According to a Forbes Advisor Report published recently, the best-value stocks for July 2024 are Celestica, Inc. (CLS), Stride, Inc. (LRN), Allison Transmission Holdings, Inc. (ALSN), T-Mobile US, Inc. (TMUS), Bank OZK (OZK), Lear Corporation (LEA), and ACM Research, Inc. (ACMR). These stocks are curated based on the low forward P/E, earnings growth, financial health, and attractive valuation based on PEG.

Buying Shares in 2024

Ensure you stay updated with company financials and track analysts' predictions and global market conditions when investing in the share market. You should also consider the dividends, trends, risks, liquidity, earnings momentum, diversification, and method of investing.

*All share data taken from TradingView as of 7 July 2024.