AI Sees Tesla @ $236 by Dec 2024. Buy Now / Cry Later?
Despite the slowdown of the 2023 electric vehicle (EV) market, $Tesla Motors(TSLA)$, led by elon musk, exhibited resilience in its growth.
The company’s incessant price slashing strategies in response to diminished demand, distinguishing its success at the expense of diminishing profit margin.
Over the year, Tesla achieved a new milestone in vehicle deliveries; although it has been displaced as the best selling EV by Chinese EV maker, $BYD Co., Ltd.(BYDDY)$ .
After 4 years of delay, Tesla unveiled its Cybertruck, in November 2023, helping to push its stock price higher last year.
Year 2024 though brought losses for Tesla.
It lost -11.89% of its price since 02 Jan 2024 and -13.65% in the past 30 days.
This prompted Finbold to use CoinCodex’s AI predictions on 15 Jan 2024 to “predict” where Tesla might end up by end of 2024. (see above)
The AI algorithms predict a slight increase for its stock to a price of $223.49, representing a +5.33% upside from the current price of $212.19 (as of 19 Jan 2024 closing price).
Analyst’s potential make-or-break situation
Comparing the disparity in performance from last year, Tesla’s price chart has formed an interesting pattern that drew the attention of analysts. (see below)
The current week represents a pivotal moment for the inverse head and shoulders setup of Tesla, essentially determining its success or failure, as per a post on X (Twitter formally) from stock analyst Jake Wujastyk on 15 Jan 2024.
The inverse head and shoulders pattern, within the realm of technical analysis (TA), indicates a potential reversal in a downtrend. (see above)
Its formation is characterized by the asset’s price establishing:
A low (referred to as the “left shoulder”).
Succeeded by a lower low (termed the “head”).
Subsequently, a higher low (designated as the “right shoulder”).
Meaning, this pattern might:
Reverse and bring gains to this stock. OR
Continue downwards, beneath its support level.
TSLA stock price analysis
At time of writing, TSLA stock price stood at $218.89, indicating a decrease of -3.67% from the previous closure on 12 Jan 2024, losing -7.32% in the last 5 sessions. (see below)
The technical indicators are also quite bearish:
With a consensus of ‘Strong Sell’ at 16.
And moving averages at 14.
Meanwhile, oscillators indicate a ‘sell’ at 2. (see below)
Will Tesla be able to replicate 2023 performance OR will this year be a period of losses and opposite performance, remains to be seen.
My viewpoints: (mine & mine only)
I don’t know if CoinCodex has taken into considerations the latest happenings with Tesla. (see below)
(a) Swedish strike continues since October 2023
Germany ends EV subsidy, affects Tesla EVs
France change EV subsidy rules affecting Tesla made in China EVs
Tesla US - rising salarly increases Expenses
The latest bitch-fit saw Mr musk’s greedy grab for additional +12% of Tesla’s shares.
This comes amidst a lawsuit brought about by shareholder against Tesla’s Board of Directors for granting an outsized $56 Billion compensation package that did not require him to work at the EV maker full-time.
This power struggle will be at the expense of shareholders regardless what is the end game, that is how I see it.
Suffice to say, all above happenings are detrimental to Tesla’s brand equity and serve as headwinds as Tesla gears up for its Q4 2023 earnings report, due out on Wed, 24 Jan 2024 after market closing.
Tesla’s 2024 outlook suddenly looks a lot dimmer than initially thought of.
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