Stock Track | Tesla Slipped 3% Amid Concerns Over Growth, Valuation and Trade Tensions

Stock Track11-12

Shares of Tesla Inc. (TSLA) were down over 3% in pre-market trading, as investors appeared to take profits following the electric vehicle maker's recent post-election rally.

Tesla's stock had surged nearly 40% since Donald Trump's reelection victory on November 5th, buoyed by optimism that the new administration's policies could benefit the company's autonomous driving and robotaxi initiatives. However, the euphoria appears to be waning amid concerns over Tesla's slowing growth prospects and lofty valuation.

While Tesla's Bitcoin holdings have appreciated significantly, reaching a value of around $1 billion as the cryptocurrency hit a new all-time high, analysts have raised concerns about the company's core electric vehicle business. Tesla's EV sales growth has been slowing, and it faces increasing competition from low-cost manufacturers like China's BYD, which offers vehicles priced as low as $10,000. This has put pressure on Tesla's profitability and raised doubts about the sustainability of its current valuation.

Additionally, there are concerns that the potential for escalating trade tensions between the US and China under the new Trump administration could impact the global tech and automotive industries, including Tesla. Trump is reportedly considering elevating China hawks like Marco Rubio and Mike Waltz to key positions, which could further strain relations between the two superpowers.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Brother272005
    11-12
    Brother272005
    Tesla will drop back to 250 if based on fair valuation from expert. Must be careful. 
  • zelia
    11-12
    zelia
    We know. The grapes very sour. Pls try harder
Leave a comment
2
2