2024-07-09 22:50:32 ET
Summary
- Tesla's stock surged over 20% after beating delivery estimates, but this paints a misleading picture.
- The core business is weaker than a year ago, and long-term growth prospects in autonomous vehicles and robotaxis remain distant.
- Being already expensive, the stock has become even pricier, earning a low valuation score from Seeking Alpha.
- This would normally be a "Short" article, but upcoming events could boost investor sentiment, making it too risky to short. Therefore, the stock receives a "Hold" rating.
Introduction
It is always tough to analyze companies with a highly enthusiastic investor base. Tesla ( TSLA ) (TSLA:CA) is definitely one of them. With its popular CEO Musk, Tesla’s investors seem ready to jump on the boat after even slightly positive news. This seems to be the case in recent weeks.
Tesla announced that it would post its financial results for the second quarter on the 23 rd of July, and it gave a sneak peek into its deliveries, beating estimates. We’ll understand why this is not a real success story later, but the announcement led to a 20% surge in the stock price....
Read the full article on Seeking Alpha
For further details see:
Surging Stock, Struggling Core: Tesla's Mixed Signals To Investors