2024-07-09 09:59:01 ET
Summary
- I don't think the current recovery rally in Tesla, Inc. stock will last long as it is not backed by the company's most important fundamentals as far as I can see.
- Q2 consolidated delivery figures became the ultimate catalyst for Tesla to start the recovery rally, as it reported 443,956 deliveries for Q2, surpassing the consensus of 437,812.
- In the short term, I expect Tesla stock to start testing its way out of the recent price consolidation. The seasonal data points to a weak momentum shortly.
- Given the serious overvaluation (40.5x P/E forecast for 2028), I see some pretty serious downside ahead.
- I've therefore decided to leave my “Sell” rating unchanged today. Sell the rip.
Intro & Thesis
If you've been following me for a while, you've probably read some of my previous 15 articles on Tesla, Inc. ( TSLA ) stock. I downgraded the stock back in April 2024 when a share was trading for $185. I made the case for not buying the dip, and since then, TSLA's performance can be compared to that of the S&P 500 Index ( SP500 , SPY ) thanks to the rally we've seen over the past three weeks alone ....
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Tesla Stock: Sell The Rip