3 Reasons to Be Very Cautious With TSLA Stock Right Now

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3 Reasons to Be Very Cautious With TSLA Stock Right Now

InvestorPlace2023-08-09

Wait for the Tesla (TSLA) stock hype to deflate before entering the trade.TSLA stock has been volatile amid a class-action lawsuit, and various analyst downgrades.Tesla’s devoted fanbase may shift ...

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ClarkYin
·2023-08-09
Seems like an opposite signal
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Mr Mooney
·2023-08-09
Should have writer name in this article.
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href=https://investorplace.com/2023/08/3-reasons-to-be-very-cautious-with-tsla-stock-right-now/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Wait for the Tesla (TSLA) stock hype to deflate before entering the trade.TSLA stock has been volatile amid a class-action lawsuit, and various analyst downgrades.Tesla’s devoted fanbase may shift ...</p>\n\n<a href=\"https://investorplace.com/2023/08/3-reasons-to-be-very-cautious-with-tsla-stock-right-now/\">Source 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ACC","09866":"蔚来-SW","BK4555":"新能源车","NIO":"蔚来"},"translate_title":"现在对TSLA股票非常谨慎的3个理由","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"XPEV":1,"TSLA":1,"NIO":1,"LI":1,"TSLL":0.9,"NIO.SI":0.6,"09866":0.6,"EVS.SI":0.6},"content_text":"Wait for the Tesla (TSLA) stock hype to deflate before entering the trade.TSLA stock has been volatile amid a class-action lawsuit, and various analyst downgrades.Tesla’s devoted fanbase may shift priorities and interest as the EV-buying population changes.Source: Arina P Habich / Shutterstock.comTesla (NASDAQ:TSLA) stock provided investors with big losses in 2022, but this year has been completely different.On a year-to-date basis, TSLA stock has surged more than 130% higher, obliterating the Nasdaq index and most of its growth peers, for that matter. Of course, as a leading EV manufacturer, Tesla provides many catalysts for growth insteps to get excited about.That said, given the company’s heightened valuation, slower-than-expected sales, and the prospect of continued lawsuits and analysts downgrades, I think now may be the time for investors to resist temptation, and wait for a dip before investing.Tesla Had Slow July SalesTesla’s China-made vehicle sales dropped by 31% in July compared to June, marking the first month-to-month decline since December.This decline coincides with a legal class action by California Tesla owners, who accuse the company of false advertising and breaching warranties.In contrast, Chinese competitors like BYD (OTCMKTS:BYDDF), Nio (NYSE:NIO), XPeng (NYSE:XPEV), and Li Auto (NASDAQ:LI) reported significantly increased July deliveries.In July, Tesla sold 64,285 electric vehicles (EVs) produced in China, marking a significant 128% increase compared to the same period last year when production was limited because of factory upgrades. Chinese competitors like BYD experienced rapid growth, with a 61% YoY rise in July sales, totaling 261,105 vehicles, including EVs, hybrids, and exports. Notably, BYD outsold Tesla in Chinese EV sales by 29% in the first half of this year.Tesla Has a New Class-Action LawsuitTSLA stock is making headlines due to a fresh class-action lawsuit related to range accuracy.The lawsuit accuses Tesla of exaggerating its EVs’ range in marketing and using a diversion team to avoid addressing customer complaints about range.The legal action, represented by Milberg Coleman Bryson Phillips Grossman, involves three plaintiffs alleging Tesla didn’t address their legitimate range concerns.Although a class-action lawsuit poses some concern for Tesla stock, its impact remains minimal for now. Shares have experienced only a slight dip on Thursday.However, the lawsuit’s outcome might become a negative trigger, influencing stock performance. Investors in TSLA stock need to monitor the legal proceedings for potential long-term implications.Tesla Stock DowngradesWhile I generally support long-term investment in Tesla, current valuation worries advise against immediate stock entry.UBS analyst Patrick Hummel, like me, recognizes Tesla’s merits but recently shifted his rating from “buy” to “hold.” It appears his primary concern is the stock’s overvaluation.Tesla leads globally in electric and autonomous mobility, though the upcoming year suggests a balanced risk/reward scenario, as noted by Hummel.Like him, I appreciate Tesla’s strides in affordable EVs, but I also find the risk-to-reward balance for Tesla stock more “balanced” than enticingly “attractive.” This sentiment is highlighted by Tesla’s high non-GAAP trailing 12-month price-to-earnings (P/E) ratio of 65.01x, notably surpassing the sector’s median of 13.17x.TSLA Valuation is Not AttractiveTesla has thrived by expanding manufacturing and capitalizing on low commodity costs and vehicle pricing power for improved margins.However, this advantageous situation is shifting. Tesla lowered prices by 10% in China, a major market. With intense competition investing heavily in the EV sector, ongoing pricing pressure could hamper Tesla’s future profit margins if selling prices are forced down.Numerous concerns cast shadows over Tesla’s outlook, but the primary deterrent for investors is its high valuation, particularly compared to industry peers.The stock’s trailing P/E ratio of nearly 50 contrasts starkly with the norm of around 10 for automotive companies, considering intense competition, substantial capital requirements, and commodity price volatility.Purchasing Tesla shares at present incorporates a presumed fivefold earnings growth, even considering possible margin decline because of earlier reasons.While Tesla might exceed these projections, less risky opportunities likely exist for investors, especially amid the current bear market. In 2023, opting for safer investments and avoiding Tesla shares appears prudent.","kind":"highlight","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":207064436523112,"gmtCreate":1691571178960,"gmtModify":1691571205377,"author":{"id":"3570721949818985","authorId":"3570721949818985","name":"ClarkYin","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3570721949818985","authorIdStr":"3570721949818985"},"htmlText":"Seems like an opposite signal","listText":"Seems like an opposite signal","text":"Seems like an opposite signal","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/207064436523112","repostId":2357248081,"repostType":2,"repost":{"id":"2357248081","kind":"highlight","pubTimestamp":1691544786,"share":"https://ttm.financial/m/news/2357248081?lang=&edition=fundamental","pubTime":"2023-08-09 09:33","market":"us","language":"en","title":"3 Reasons to Be Very Cautious With TSLA Stock Right Now","url":"https://stock-news.laohu8.com/highlight/detail?id=2357248081","media":"InvestorPlace","summary":"Here's why long-term growth investors may want to take a hard look at some of Tesla's competitors in this current environment.","content":"<html><head></head><body><ul><li><p>Wait for the <strong>Tesla</strong> (TSLA) stock hype to deflate before entering the trade.</p></li><li><p>TSLA stock has been volatile amid a class-action lawsuit, and various analyst downgrades.</p></li><li><p>Tesla’s devoted fanbase may shift priorities and interest as the EV-buying population changes.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/1ba8e091ae0fd78e9eea4ebbaf77fd96\" tg-width=\"768\" tg-height=\"432\"/></p><p>Source: Arina P Habich / Shutterstock.com</p><p><strong>Tesla</strong> (NASDAQ:<strong>TSLA</strong>) stock provided investors with big losses in 2022, but this year has been completely different.</p><p>On a year-to-date basis, TSLA stock has surged more than 130% higher, obliterating the <strong>Nasdaq </strong>index and most of its growth peers, for that matter. </p><p>Of course, as a leading EV manufacturer, Tesla provides many catalysts for growth insteps to get excited about.</p><p>That said, given the company’s heightened valuation, slower-than-expected sales, and the prospect of continued lawsuits and analysts downgrades, I think now may be the time for investors to resist temptation, and wait for a dip before investing.</p><h2 id=\"id_3693091812\">Tesla Had Slow July Sales</h2><p>Tesla’s China-made vehicle sales dropped by 31% in July compared to June, marking the first month-to-month decline since December.</p><p>This decline coincides with a legal class action by California Tesla owners, who accuse the company of false advertising and breaching warranties.</p><p>In contrast, Chinese competitors like <strong>BYD</strong> (OTCMKTS:<strong>BYDDF</strong>), <strong>Nio</strong> (NYSE:<strong>NIO</strong>), <strong>XPeng</strong> (NYSE:<strong>XPEV</strong>), and <strong>Li Auto</strong> (NASDAQ:<strong>LI</strong>) reported significantly increased July deliveries.</p><p>In July, Tesla sold 64,285 electric vehicles (EVs) produced in China, marking a significant 128% increase compared to the same period last year when production was limited because of factory upgrades. </p><p>Chinese competitors like BYD experienced rapid growth, with a 61% YoY rise in July sales, totaling 261,105 vehicles, including EVs, hybrids, and exports. Notably, BYD outsold Tesla in Chinese EV sales by 29% in the first half of this year.</p><h2 id=\"id_1058043381\">Tesla Has a New Class-Action Lawsuit</h2><p>TSLA stock is making headlines due to a fresh class-action lawsuit related to range accuracy.</p><p>The lawsuit accuses Tesla of exaggerating its EVs’ range in marketing and using a diversion team to avoid addressing customer complaints about range.</p><p>The legal action, represented by Milberg Coleman Bryson Phillips Grossman, involves three plaintiffs alleging Tesla didn’t address their legitimate range concerns.</p><p>Although a class-action lawsuit poses some concern for Tesla stock, its impact remains minimal for now. Shares have experienced only a slight dip on Thursday.</p><p>However, the lawsuit’s outcome might become a negative trigger, influencing stock performance. Investors in TSLA stock need to monitor the legal proceedings for potential long-term implications.</p><h2 id=\"id_265789913\">Tesla Stock Downgrades</h2><p>While I generally support long-term investment in Tesla, current valuation worries advise against immediate stock entry.</p><p>UBS analyst Patrick Hummel, like me, recognizes Tesla’s merits but recently shifted his rating from “buy” to “hold.” It appears his primary concern is the stock’s overvaluation.</p><p>Tesla leads globally in electric and autonomous mobility, though the upcoming year suggests a balanced risk/reward scenario, as noted by Hummel.</p><p>Like him, I appreciate Tesla’s strides in affordable EVs, but I also find the risk-to-reward balance for Tesla stock more “balanced” than enticingly “attractive.” </p><p>This sentiment is highlighted by Tesla’s high non-GAAP trailing 12-month price-to-earnings (P/E) ratio of 65.01x, notably surpassing the sector’s median of 13.17x.</p><h2 id=\"id_3179414297\">TSLA Valuation is Not Attractive</h2><p>Tesla has thrived by expanding manufacturing and capitalizing on low commodity costs and vehicle pricing power for improved margins.</p><p>However, this advantageous situation is shifting. Tesla lowered prices by 10% in China, a major market. With intense competition investing heavily in the EV sector, ongoing pricing pressure could hamper Tesla’s future profit margins if selling prices are forced down.</p><p>Numerous concerns cast shadows over Tesla’s outlook, but the primary deterrent for investors is its high valuation, particularly compared to industry peers.</p><p>The stock’s trailing P/E ratio of nearly 50 contrasts starkly with the norm of around 10 for automotive companies, considering intense competition, substantial capital requirements, and commodity price volatility.</p><p>Purchasing Tesla shares at present incorporates a presumed fivefold earnings growth, even considering possible margin decline because of earlier reasons.</p><p>While Tesla might exceed these projections, less risky opportunities likely exist for investors, especially amid the current bear market. In 2023, opting for safer investments and avoiding Tesla shares appears prudent.</p></body></html>","source":"investorplace_stock_picks","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 Reasons to Be Very Cautious With TSLA Stock Right Now</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Reasons to Be Very Cautious With TSLA Stock Right Now\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-08-09 09:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2023/08/3-reasons-to-be-very-cautious-with-tsla-stock-right-now/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Wait for the Tesla (TSLA) stock hype to deflate before entering the trade.TSLA stock has been volatile amid a class-action lawsuit, and various analyst downgrades.Tesla’s devoted fanbase may shift ...</p>\n\n<a href=\"https://investorplace.com/2023/08/3-reasons-to-be-very-cautious-with-tsla-stock-right-now/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","BK4511":"特斯拉概念","LU1861558580.USD":"日兴方舟颠覆性创新基金B","BK4099":"汽车制造商","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","BK4563":"昨日强势股","LU0320764599.SGD":"FTIF - Templeton China A Acc SGD","BK4548":"巴美列捷福持仓","NIO.SI":"蔚来","LU1861215975.USD":"贝莱德新一代科技基金 A2","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","BK4532":"文艺复兴科技持仓","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU1839511570.USD":"WELLS FARGO GLOBAL FACTOR ENHANCED EQUITY \"I\" (USD) ACC","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","BK4531":"中概回港概念","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","XPEV":"小鹏汽车","EVS.SI":"MSCI China Electric Vehicles and Future Mobility ETF-NikkoAM","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0056508442.USD":"贝莱德世界科技基金A2","LU0708995583.HKD":"TEMPLETON CHINA \"A\" (HKD) ACC","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","BK4555":"新能源车","BK4509":"腾讯概念","LU0234572021.USD":"高盛美国核心股票组合Acc","NIO":"蔚来","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","09866":"蔚来-SW","BK4550":"红杉资本持仓","BK4588":"碎股","LI":"理想汽车","LU2063271972.USD":"富兰克林创新领域基金","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4551":"寇图资本持仓","TSLA":"特斯拉","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","TSLL":"Direxion Daily TSLA Bull 2X Shares","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU1548497426.USD":"安联环球人工智能AT Acc"},"source_url":"https://investorplace.com/2023/08/3-reasons-to-be-very-cautious-with-tsla-stock-right-now/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2357248081","content_text":"Wait for the Tesla (TSLA) stock hype to deflate before entering the trade.TSLA stock has been volatile amid a class-action lawsuit, and various analyst downgrades.Tesla’s devoted fanbase may shift priorities and interest as the EV-buying population changes.Source: Arina P Habich / Shutterstock.comTesla (NASDAQ:TSLA) stock provided investors with big losses in 2022, but this year has been completely different.On a year-to-date basis, TSLA stock has surged more than 130% higher, obliterating the Nasdaq index and most of its growth peers, for that matter. Of course, as a leading EV manufacturer, Tesla provides many catalysts for growth insteps to get excited about.That said, given the company’s heightened valuation, slower-than-expected sales, and the prospect of continued lawsuits and analysts downgrades, I think now may be the time for investors to resist temptation, and wait for a dip before investing.Tesla Had Slow July SalesTesla’s China-made vehicle sales dropped by 31% in July compared to June, marking the first month-to-month decline since December.This decline coincides with a legal class action by California Tesla owners, who accuse the company of false advertising and breaching warranties.In contrast, Chinese competitors like BYD (OTCMKTS:BYDDF), Nio (NYSE:NIO), XPeng (NYSE:XPEV), and Li Auto (NASDAQ:LI) reported significantly increased July deliveries.In July, Tesla sold 64,285 electric vehicles (EVs) produced in China, marking a significant 128% increase compared to the same period last year when production was limited because of factory upgrades. Chinese competitors like BYD experienced rapid growth, with a 61% YoY rise in July sales, totaling 261,105 vehicles, including EVs, hybrids, and exports. Notably, BYD outsold Tesla in Chinese EV sales by 29% in the first half of this year.Tesla Has a New Class-Action LawsuitTSLA stock is making headlines due to a fresh class-action lawsuit related to range accuracy.The lawsuit accuses Tesla of exaggerating its EVs’ range in marketing and using a diversion team to avoid addressing customer complaints about range.The legal action, represented by Milberg Coleman Bryson Phillips Grossman, involves three plaintiffs alleging Tesla didn’t address their legitimate range concerns.Although a class-action lawsuit poses some concern for Tesla stock, its impact remains minimal for now. Shares have experienced only a slight dip on Thursday.However, the lawsuit’s outcome might become a negative trigger, influencing stock performance. Investors in TSLA stock need to monitor the legal proceedings for potential long-term implications.Tesla Stock DowngradesWhile I generally support long-term investment in Tesla, current valuation worries advise against immediate stock entry.UBS analyst Patrick Hummel, like me, recognizes Tesla’s merits but recently shifted his rating from “buy” to “hold.” It appears his primary concern is the stock’s overvaluation.Tesla leads globally in electric and autonomous mobility, though the upcoming year suggests a balanced risk/reward scenario, as noted by Hummel.Like him, I appreciate Tesla’s strides in affordable EVs, but I also find the risk-to-reward balance for Tesla stock more “balanced” than enticingly “attractive.” This sentiment is highlighted by Tesla’s high non-GAAP trailing 12-month price-to-earnings (P/E) ratio of 65.01x, notably surpassing the sector’s median of 13.17x.TSLA Valuation is Not AttractiveTesla has thrived by expanding manufacturing and capitalizing on low commodity costs and vehicle pricing power for improved margins.However, this advantageous situation is shifting. Tesla lowered prices by 10% in China, a major market. With intense competition investing heavily in the EV sector, ongoing pricing pressure could hamper Tesla’s future profit margins if selling prices are forced down.Numerous concerns cast shadows over Tesla’s outlook, but the primary deterrent for investors is its high valuation, particularly compared to industry peers.The stock’s trailing P/E ratio of nearly 50 contrasts starkly with the norm of around 10 for automotive companies, considering intense competition, substantial capital requirements, and commodity price volatility.Purchasing Tesla shares at present incorporates a presumed fivefold earnings growth, even considering possible margin decline because of earlier reasons.While Tesla might exceed these projections, less risky opportunities likely exist for investors, especially amid the current bear market. In 2023, opting for safer investments and avoiding Tesla shares appears prudent.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":207049919303920,"gmtCreate":1691567783564,"gmtModify":1691567789572,"author":{"id":"3583044537429562","authorId":"3583044537429562","name":"Mr Mooney","avatar":"https://community-static.tradeup.com/news/6836340f20d36afa666f6d8d4b0a929d","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3583044537429562","authorIdStr":"3583044537429562"},"htmlText":"Should have writer name in this article.","listText":"Should have writer name in this article.","text":"Should have writer name in this article.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/207049919303920","repostId":2357248081,"repostType":2,"repost":{"id":"2357248081","kind":"highlight","pubTimestamp":1691544786,"share":"https://ttm.financial/m/news/2357248081?lang=&edition=fundamental","pubTime":"2023-08-09 09:33","market":"us","language":"en","title":"3 Reasons to Be Very Cautious With TSLA Stock Right Now","url":"https://stock-news.laohu8.com/highlight/detail?id=2357248081","media":"InvestorPlace","summary":"Here's why long-term growth investors may want to take a hard look at some of Tesla's competitors in this current environment.","content":"<html><head></head><body><ul><li><p>Wait for the <strong>Tesla</strong> (TSLA) stock hype to deflate before entering the trade.</p></li><li><p>TSLA stock has been volatile amid a class-action lawsuit, and various analyst downgrades.</p></li><li><p>Tesla’s devoted fanbase may shift priorities and interest as the EV-buying population changes.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/1ba8e091ae0fd78e9eea4ebbaf77fd96\" tg-width=\"768\" tg-height=\"432\"/></p><p>Source: Arina P Habich / Shutterstock.com</p><p><strong>Tesla</strong> (NASDAQ:<strong>TSLA</strong>) stock provided investors with big losses in 2022, but this year has been completely different.</p><p>On a year-to-date basis, TSLA stock has surged more than 130% higher, obliterating the <strong>Nasdaq </strong>index and most of its growth peers, for that matter. </p><p>Of course, as a leading EV manufacturer, Tesla provides many catalysts for growth insteps to get excited about.</p><p>That said, given the company’s heightened valuation, slower-than-expected sales, and the prospect of continued lawsuits and analysts downgrades, I think now may be the time for investors to resist temptation, and wait for a dip before investing.</p><h2 id=\"id_3693091812\">Tesla Had Slow July Sales</h2><p>Tesla’s China-made vehicle sales dropped by 31% in July compared to June, marking the first month-to-month decline since December.</p><p>This decline coincides with a legal class action by California Tesla owners, who accuse the company of false advertising and breaching warranties.</p><p>In contrast, Chinese competitors like <strong>BYD</strong> (OTCMKTS:<strong>BYDDF</strong>), <strong>Nio</strong> (NYSE:<strong>NIO</strong>), <strong>XPeng</strong> (NYSE:<strong>XPEV</strong>), and <strong>Li Auto</strong> (NASDAQ:<strong>LI</strong>) reported significantly increased July deliveries.</p><p>In July, Tesla sold 64,285 electric vehicles (EVs) produced in China, marking a significant 128% increase compared to the same period last year when production was limited because of factory upgrades. </p><p>Chinese competitors like BYD experienced rapid growth, with a 61% YoY rise in July sales, totaling 261,105 vehicles, including EVs, hybrids, and exports. Notably, BYD outsold Tesla in Chinese EV sales by 29% in the first half of this year.</p><h2 id=\"id_1058043381\">Tesla Has a New Class-Action Lawsuit</h2><p>TSLA stock is making headlines due to a fresh class-action lawsuit related to range accuracy.</p><p>The lawsuit accuses Tesla of exaggerating its EVs’ range in marketing and using a diversion team to avoid addressing customer complaints about range.</p><p>The legal action, represented by Milberg Coleman Bryson Phillips Grossman, involves three plaintiffs alleging Tesla didn’t address their legitimate range concerns.</p><p>Although a class-action lawsuit poses some concern for Tesla stock, its impact remains minimal for now. Shares have experienced only a slight dip on Thursday.</p><p>However, the lawsuit’s outcome might become a negative trigger, influencing stock performance. Investors in TSLA stock need to monitor the legal proceedings for potential long-term implications.</p><h2 id=\"id_265789913\">Tesla Stock Downgrades</h2><p>While I generally support long-term investment in Tesla, current valuation worries advise against immediate stock entry.</p><p>UBS analyst Patrick Hummel, like me, recognizes Tesla’s merits but recently shifted his rating from “buy” to “hold.” It appears his primary concern is the stock’s overvaluation.</p><p>Tesla leads globally in electric and autonomous mobility, though the upcoming year suggests a balanced risk/reward scenario, as noted by Hummel.</p><p>Like him, I appreciate Tesla’s strides in affordable EVs, but I also find the risk-to-reward balance for Tesla stock more “balanced” than enticingly “attractive.” </p><p>This sentiment is highlighted by Tesla’s high non-GAAP trailing 12-month price-to-earnings (P/E) ratio of 65.01x, notably surpassing the sector’s median of 13.17x.</p><h2 id=\"id_3179414297\">TSLA Valuation is Not Attractive</h2><p>Tesla has thrived by expanding manufacturing and capitalizing on low commodity costs and vehicle pricing power for improved margins.</p><p>However, this advantageous situation is shifting. Tesla lowered prices by 10% in China, a major market. With intense competition investing heavily in the EV sector, ongoing pricing pressure could hamper Tesla’s future profit margins if selling prices are forced down.</p><p>Numerous concerns cast shadows over Tesla’s outlook, but the primary deterrent for investors is its high valuation, particularly compared to industry peers.</p><p>The stock’s trailing P/E ratio of nearly 50 contrasts starkly with the norm of around 10 for automotive companies, considering intense competition, substantial capital requirements, and commodity price volatility.</p><p>Purchasing Tesla shares at present incorporates a presumed fivefold earnings growth, even considering possible margin decline because of earlier reasons.</p><p>While Tesla might exceed these projections, less risky opportunities likely exist for investors, especially amid the current bear market. In 2023, opting for safer investments and avoiding Tesla shares appears prudent.</p></body></html>","source":"investorplace_stock_picks","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 Reasons to Be Very Cautious With TSLA Stock Right Now</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Reasons to Be Very Cautious With TSLA Stock Right Now\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-08-09 09:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2023/08/3-reasons-to-be-very-cautious-with-tsla-stock-right-now/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Wait for the Tesla (TSLA) stock hype to deflate before entering the trade.TSLA stock has been volatile amid a class-action lawsuit, and various analyst downgrades.Tesla’s devoted fanbase may shift ...</p>\n\n<a href=\"https://investorplace.com/2023/08/3-reasons-to-be-very-cautious-with-tsla-stock-right-now/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","BK4511":"特斯拉概念","LU1861558580.USD":"日兴方舟颠覆性创新基金B","BK4099":"汽车制造商","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","BK4563":"昨日强势股","LU0320764599.SGD":"FTIF - 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USA GROWTH \"P\" (USD) ACC","LU1548497426.USD":"安联环球人工智能AT Acc"},"source_url":"https://investorplace.com/2023/08/3-reasons-to-be-very-cautious-with-tsla-stock-right-now/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2357248081","content_text":"Wait for the Tesla (TSLA) stock hype to deflate before entering the trade.TSLA stock has been volatile amid a class-action lawsuit, and various analyst downgrades.Tesla’s devoted fanbase may shift priorities and interest as the EV-buying population changes.Source: Arina P Habich / Shutterstock.comTesla (NASDAQ:TSLA) stock provided investors with big losses in 2022, but this year has been completely different.On a year-to-date basis, TSLA stock has surged more than 130% higher, obliterating the Nasdaq index and most of its growth peers, for that matter. Of course, as a leading EV manufacturer, Tesla provides many catalysts for growth insteps to get excited about.That said, given the company’s heightened valuation, slower-than-expected sales, and the prospect of continued lawsuits and analysts downgrades, I think now may be the time for investors to resist temptation, and wait for a dip before investing.Tesla Had Slow July SalesTesla’s China-made vehicle sales dropped by 31% in July compared to June, marking the first month-to-month decline since December.This decline coincides with a legal class action by California Tesla owners, who accuse the company of false advertising and breaching warranties.In contrast, Chinese competitors like BYD (OTCMKTS:BYDDF), Nio (NYSE:NIO), XPeng (NYSE:XPEV), and Li Auto (NASDAQ:LI) reported significantly increased July deliveries.In July, Tesla sold 64,285 electric vehicles (EVs) produced in China, marking a significant 128% increase compared to the same period last year when production was limited because of factory upgrades. Chinese competitors like BYD experienced rapid growth, with a 61% YoY rise in July sales, totaling 261,105 vehicles, including EVs, hybrids, and exports. Notably, BYD outsold Tesla in Chinese EV sales by 29% in the first half of this year.Tesla Has a New Class-Action LawsuitTSLA stock is making headlines due to a fresh class-action lawsuit related to range accuracy.The lawsuit accuses Tesla of exaggerating its EVs’ range in marketing and using a diversion team to avoid addressing customer complaints about range.The legal action, represented by Milberg Coleman Bryson Phillips Grossman, involves three plaintiffs alleging Tesla didn’t address their legitimate range concerns.Although a class-action lawsuit poses some concern for Tesla stock, its impact remains minimal for now. Shares have experienced only a slight dip on Thursday.However, the lawsuit’s outcome might become a negative trigger, influencing stock performance. Investors in TSLA stock need to monitor the legal proceedings for potential long-term implications.Tesla Stock DowngradesWhile I generally support long-term investment in Tesla, current valuation worries advise against immediate stock entry.UBS analyst Patrick Hummel, like me, recognizes Tesla’s merits but recently shifted his rating from “buy” to “hold.” It appears his primary concern is the stock’s overvaluation.Tesla leads globally in electric and autonomous mobility, though the upcoming year suggests a balanced risk/reward scenario, as noted by Hummel.Like him, I appreciate Tesla’s strides in affordable EVs, but I also find the risk-to-reward balance for Tesla stock more “balanced” than enticingly “attractive.” This sentiment is highlighted by Tesla’s high non-GAAP trailing 12-month price-to-earnings (P/E) ratio of 65.01x, notably surpassing the sector’s median of 13.17x.TSLA Valuation is Not AttractiveTesla has thrived by expanding manufacturing and capitalizing on low commodity costs and vehicle pricing power for improved margins.However, this advantageous situation is shifting. Tesla lowered prices by 10% in China, a major market. With intense competition investing heavily in the EV sector, ongoing pricing pressure could hamper Tesla’s future profit margins if selling prices are forced down.Numerous concerns cast shadows over Tesla’s outlook, but the primary deterrent for investors is its high valuation, particularly compared to industry peers.The stock’s trailing P/E ratio of nearly 50 contrasts starkly with the norm of around 10 for automotive companies, considering intense competition, substantial capital requirements, and commodity price volatility.Purchasing Tesla shares at present incorporates a presumed fivefold earnings growth, even considering possible margin decline because of earlier reasons.While Tesla might exceed these projections, less risky opportunities likely exist for investors, especially amid the current bear market. In 2023, opting for safer investments and avoiding Tesla shares appears prudent.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":24,"commentSize":2,"repostSize":2,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}