Is Tesla Poised For A Rebound?
πππAfter more than a month on the low, $Tesla Motors(TSLA)$
appears to be staging a comeback. On Monday, Tesla surged am impressive 7%, the first rebound rise after the dip prompted by Tesla's worse than expected earnings report on July 19 2023.
Tesla's share price has dropped almost 30% from its peak of USD 300 in 2023 due to China's slowing economy and pricing worries in the EV markets. Elon Musk has said that he will not hesitate to lower prices to stay competitive. His words was followed by his action as he has just cut prices on the Model Y in China just last week.
Recent data from China showed that Tesla's sales fell 31% in July compared to June, hitting the lowest point in 2023. Moreover Tesla's competitors in China reported increased deliveries.
However Tesla is more than just an EV company. With the launch of Cybertruck and deliveries of Tesla's Semis to Pepsi, Tesla has lots of exciting projects in the pipeline. There is also positive expectation due to an increased demand for FSD - Fully Autonomous Driving Software. Tesla is working on an AI super computer called Dojo that it believes can help bring about FSD by improving its ability to train neural nets to bolster the FSD's decision making in various driving environment.
If FSD becomes a reality, Tesla can execute on its plan to introduce a global fleet of robotaxis that can drive passengers 24/7.
Tesla's Energy storage sector gained significant traction in 2023, reaching 7.5 gigawatts of battery storage per hour in the 1st half of 2023, a 280% increase! This boosted Tesla's non core profit margin and overall sales.
Tesla is truly an innovative and game changing company. The potential for Tesla's growth in the future is enormous.
In the short term, Tesla is facing strong headwinds of intensive EV competition especially in China and the slowing down of global economy. However in the long term, Tesla will continue to grow exponentially. It takes time and patience to allow Tesla's share price to reach its full potential.
As Charlie Munger loves to say, The Big Money is not in the Buying and Selling but in the Waiting.
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TSLA is the ultimate hype stock with Musk as the leader of the cult. Currently Tesla is worth more than GM & Ford combined market cap of 60 Billion to Tesla 700 Billion with Tesla doing a fraction of the sales of Ford & GM.
TSLA is moving higher even. I told you shorties , your delusion screwed you up again. No reason this low under 300 but games.
Electric Vehicle stocks down thousands of percentages in past 2 years. Black Swan coming to Tesla overhyped ev stock
Tesla trades on sentiment, not valuation. You donβt need to believe in it to profit from it