Tesla Stock: Has TSLA Stock Finally Bottomed?
Ah, the joys of being a Tesla ($194.08|15.33%) bull. I know that in recent weeks I’ve said I wouldn’t touch Tesla stock until its fundamentals have changed. Have they? I don’t think they have materially changed for the better but the stock has been seeing a bit of a rebound over the past week. The Tesla permabulls will tell you that the latest version of FSD is a game changer. I’ve heard that for a lot of the previous versions as well. The bottom line with FSD is having it approved by regulatory bodies and convincing people to pay for the service. So far, Tesla hasn’t convinced me that either of these is imminent.
On top of that, Tesla’s Cybertruck hasn’t done much to make investors bullish on the stock. Neither has the Tesla Semi. Neither has opened its Supercharger network to other automakers nor has the Optimus Bot or even the Tesla Roadster. None of the recent announcements from the company have moved the needle at all.
The company did announce it would be raising prices on some vehicles which is a positive step in the right direction. But of course, first-quarter deliveries came in way under estimates which has led to bearish sentiment for the stock and the company’s future growth prospects. There is a part of me that believes that Tesla’s hypergrowth story has come to an end. It can still grow in the future, but the returns investors see will pale in comparison to what they saw pre-2020.
Could I be wrong? I hope so. One optimistic catalyst could be the growth of its energy segment. Many people believe that this could be bigger than electric vehicles in the future.
Tesla Stock Analysis: Robo Taxis to the Rescue?
The chart isn’t a nice one, even with the rebound this week. It’s bear flag after bear flag after bear flag on the daily chart. Someone really wants to keep seeing Tesla’s stock price lower. Perhaps it is institutions that have been constantly downgrading Tesla’s stock as it continues to fall. The daily chart is approaching a long-term support level at around $150 so we’ll see if the stock manages to fall that low.
The bearish downtrend is undeniable. Tesla is trading below all of its major moving averages and needs some catalyst to reverse the trend. Is it the upcoming earnings report? It could be, but again, many believe that the numbers will be bad, especially after the weak delivery report.
Could it just be that everything is priced into the stock now? EV demand is said to be on the decline but rival Rivian (NASDAQ: RIVN) just handily beat consensus delivery figures for the quarter. Tesla’s issues seem to stem from a decline in demand in China, the largest auto market in the world.
Now let’s get to the recent announcement Musk made. Tesla will be unveiling its robo taxis on August 8th. The stock popped higher after the markets closed on Friday. I think we need to see what this is all about before making a decision. I do think in the short-term, we can see Tesla have a pop which could make for a good swing trade.
Am I ready to jump back in? I don’t think so. If you were to ask me, I would wait to see if another bear flag plays out here. Long-term support areas are usually magnets for stocks and I still think Tesla sees $150 before it sees $200, even with the Robo-taxi announcement. I’ll be a buyer back in the $150’s but for now, I’m still on the sidelines.
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