GM - Tesla Stock: This Is A Great Buying Point
2024-06-17 16:46:26 ET
Summary
- Tesla, Inc.'s stagnant performance stands in stark contrast to the rapid growth of the S&P 500 over the past few quarters.
- I believe that we're now looking at a great buying point in Tesla stock amid an abundance of bullish catalysts around it.
- The continuation of the systematic shift to the less cyclical non-automotive segment should, in my opinion, and the margin contraction and lead to systematic growth in the long term.
- Tesla has never been this cheap from a historical perspective - look at EV/EBITDA (both TTM and FWD) and compare the current position with recent years to see that.
- Returning control to CEO Elon Musk was a must - I now expect AI to become a cornerstone for the company's growth. I reiterate my previous "Buy" rating today.
My Thesis
In March 2024, I initiated coverage of Tesla, Inc. ( TSLA ) stock, suggesting that it was in the buy zone and investors should consider a long-term position. My analysis at the time was based on the findings that the company's margins were showing early signs of a potential turnaround shortly; in addition, Tesla's long-term prospects and its leadership position in EV production and clean energy were adding significant growth potential. However, despite my findings, Tesla stock's price remained flat in the quarter following the publication of my article. This stagnant performance stands in stark contrast to the rapid growth of the S&P 500 ( SP500 , SPX ) over the same period:
Seeking Alpha, Oakoff's coverage of TSLA stock