TM - Tesla Stock's 2024 Struggles Are Not Justified

2024-06-04 09:43:07 ET

Summary

• Tesla, Inc. investors are suffering a lot in 2024, but I consider the dip to be temporary because long-term trends are favorable for the company.
• Tesla's competition in the EV industry is exaggerated, as it by far outperforms other EV models and faces limited competition from Chinese manufacturers.
• Tesla's long-term goals, including the introduction of a low-cost model and expansion into AI and energy generation, make it a strong investment opportunity.

Introduction

I had a thesis about Tesla, Inc. ( TSLA ) with a "Strong Buy" recommendation, shared in early March. The stock price has declined by 2.5% since my previous publication about the stock, compared to +4% from the S&P 500 (SP500). The environment continues to be challenging for automotive companies due to high interest rates. Macro headwinds were reflected in the company's Q1 report, as automotive margins are deteriorating and sales stagnating....

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