That said, this could change over the next twelve months. On the other hand, as much remains in its favor, they haven’t felt the need to bid it down to a more reasonable valuation.
Trading sideways since February, investors are hesitant about pushing TSLA stock to an even higher valuation. If the company fails to deliver on its plans for a low-cost, self-driving vehicle? Big downside may lie ahead. Nevertheless, that doesn’t mean this narrative can’t quickly unravel. Yet CEO Elon Musk can continue to make big promises, and until it becomes unmistakably clear that Musk can’t deliver, investors will carry on pricing the possibilities he’s laid out as near-certainties. To those still skeptical about TSLA stock, this “narrative” may seem mind-boggling. Not only that, with the potential upside that could result from some of its catalysts playing out, in the eyes of the market, it also remains perfectly rational to value this company at a level that makes it more valuable than all of its major automotive competitors combined. Why does the bullish narrative around Tesla shares continue to hold? With figures like its recent strong Chinese EV sales numbers (up three-fold year-over-year, and 34% month-over-month), there’s plenty out there to convince investors that the company remains in high-growth mode. (See Tesla stock charts on TipRanks) For Now, the Narrative Still Holds for TSLA Stock
Still, it’s definitely not a situation to pounce on at current price levels. It may be a worthwhile buy, if market turmoil temporarily knocks it down to lower prices. With so much riding on the company meeting sky-high expectations, there’s a lot more on the horizon that could sink Tesla rather than send it back to its highs.įor this, I am neutral on this stock. Yet is diving into it today the best move? No, and here’s why.
The skeptics and the shorts have had to throw in the towel. Even after its pullback to around $735 per share, it’s up nearly fifteen-fold. Since late 2019, the electric vehicle play has surged from around $50, to as much as $900.40 per share. TSLA Stock: Tesla Remains a ‘Stay on the Sidelines’ Situationįor the past two years, ignoring the musings of Tesla ( TSLA) stock skeptics has been highly profitable.
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