Not surprising, isn't it?
Tesla was once the darling of tech stock and it miraculously shot up sky-high due to potential high growth and it's prowess in EV. Today, as it's stock PE is in extremely high ratio and the rise of many worthy competitors in EV industry such as BYD and the likes, to continue buying into Tesla I'd no longer a reliable source of high growth.
And worse, with intense competition in the EV arena, Tesla has been shedding RSP of its offering and thus driving down margins and high gains.
Cybercoin like Coinbase similarly is no longer the darling of its industry and in fact it's unsafe to buy onto such shares. Letting go and take profits if there's any would be a wiser choice.
My take is to focus elsewhere likes the financial banking and consumer discretionary stocks. Perhaps supply chain players are a good bet for me what's your take?
Good luck
Comments
I’m afraid to say this but Tesla hitting over $305 tomorrow after earnings and if it gets fomo and momentum we can see $320.
With more and more EV competition, profit margin can only drop more and more... It is unavoidable. Tesla must sell more cars to increase its revenue every quarter.
Just keep buying on any dips, this is a technology company that will change the way we think about the future.
Tesla is overvalued. It will sink when it hits the iceberg and go down like the Titanic!
The impossible has happened! Reducing price has actually caused lower margins.