Wall Street bargain-hunting has not been enough to turn Tuesday’s bigger tide green. Tesla (NASDAQ.TSLA), meanwhile, fell almost 7%.
However, TSLA stock has been declining in value and is proving to be a difficult asset in 2022. But conditions are improving for Tesla shareholders. Let’s now look at some pros and cons for the electric vehicle giant and how Tesla stock is a better long-term investment. Tesla’s CEO Elon Musser and Tesla aren’t in the forefront of bearishness for once. It doesn’t mean that there aren’t unfinished bearish matters to navigate.
Bears in the Driver’s seat of TSLA stock
Tesla has been impacted by Covid-19 more than anyone else. Tesla’s Shanghai Gigafactory temporarily shut down in April. The ongoing difficulties Tesla has had in obtaining critical nickel and other materials, as well as the increased production costs, have resulted to higher production costs and increased risks of Tesla not meeting their vehicle forecasts.
Then there is TSLA stock, with its tabloid-style, but clearly significant headaches caused by Musk.
TSLA stock has been affected in recent months by Elon’s bid for Twitter (NYSE.TWTR), which he purchased from his favorite platform. To make the deal possible, the billionaire has already sold about $8.5 million of his TSLA shares. However, a successful bid may prove more challenging due to Elon’s TSLA stock holdings.
Tesla investors are also skeptics about the purchase, because they fear it will distract Musk from the EV market’s crown jewel. And this could potentially prove costly to TSLA stock.
There are also allegations of $250,000 in payments related to sexual misconduct accusations against an attendant aboard a SpaceX corporate aircraft in 2016. Tesla CEO declares the claim “utterly false.”
Why Bulls Should Invest Money in TSLA Stock
Tesla’s uncertain future is evident. TSLA stock can be a source of worry, but it’s best to hear the facts until proven otherwise.
Despite headline-grabbing innuendos Tesla’s Shanghai Gigafactory production is back at the 1,000 EVs it produced before April’s closure. Tesla executives believe that Tesla can produce 2,600 vehicles per day. This allows it to meet its target 1.5 million EVs.
The Motley Fool points out that Tesla’s expected vehicle delivery growth of 50% along with large profit margins means that shares trade for less 50 times this year’s earnings. TSLA stock is a solid option for investors who want to buy growth at a competitive valuation.
Investors will not be able to make a case for a Tesla price table that looks like it is on sale, even though it is well-loved.
Shares have been falling from their Covid based uptrend in February. They also had a cup-shaped basis and most recently a half-retracement level. However, an oversold TSLA share has a lot going in its favor as a contrarian value-driven buy.
How to Buy TSLA Stock Easily
To be fair, TSLA stock buying today may seem premature considering the risk-averse behavior of the wider market. As we approach those dog days of Summer, buyers may be eligible for back-up truck conditions starting at $350 to 500 a share.
For Tesla stock forecast 2025 head on over to StockForecast.
To be honest, I’d rather wait for two things before I bought Tesla.
First and foremost, Wall Street becomes rattled enough to offer a delivery of TSLA stocks nearer $500. Investors might then buy their first stock and not be as strict about finding a bottom.
A weekly bottom candlestick with an improving stochastics indicator backing it would be another option.
You have the option to park options around Tesla’s stock position, if you choose to buy it. Investors can take advantage of future bullish trend and decrease exposure to bigger bear markets.