Tesla had a remarkable year in 2023, with its shares more than doubling in value. However, this success may set a higher bar for the company in 2024. The electric vehicle (EV) maker’s shares are currently considered expensive, especially when compared to analyst profit forecasts that may need to be revised downward.

Despite delivering approximately 485,000 electric vehicles in the last quarter, which slightly exceeded expectations, Tesla faced tough competition from its Chinese rival, BYD, which sold around 526,000 vehicles. This marked the first time that Tesla was outsold on a quarterly basis. With BYD offering more affordable vehicles in a larger domestic market, it is anticipated that Tesla will continue to face challenges in the future.