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Tesla Stock Remains a ‘Stay on the Sidelines’ Situation

For the past two years, ignoring the musings of Tesla (NASDAQ:TSLA) stock skeptics has been highly profitable. Since late 2019, the electric vehicle play has surged from around...
Tesla Stock Remains a ‘Stay on the Sidelines’ Situation © Reuters. Tesla Stock Remains a ‘Stay on the Sidelines’ Situation

For the past two years, ignoring the musings of Tesla (NASDAQ:TSLA) stock skeptics has been highly profitable. Since late 2019, the electric vehicle play has surged from around $50, to as much as $900.40 per share. Even after its pullback to around $735 per share, it’s up nearly fifteen-fold.

The skeptics and the shorts have had to throw in the towel. Yet is diving into it today the best move? No, and here’s why.

With so much riding on the company meeting sky-high expectations, there’s a lot more on the horizon that could sink Tesla rather than send it back to its highs.

For this, I am neutral on this stock. It may be a worthwhile buy, if market turmoil temporarily knocks it down to lower prices. Still, it’s definitely not a situation to pounce on at current price levels. (See Tesla stock charts on TipRanks)

For Now, the Narrative Still Holds for TSLA Stock

Why does the bullish narrative around Tesla shares continue to hold? With figures like its recent strong Chinese EV sales numbers (up three-fold year-over-year, and 34% month-over-month), there’s plenty out there to convince investors that the company remains in high-growth mode.

Not only that, with the potential upside that could result from some of its catalysts playing out, in the eyes of the market, it also remains perfectly rational to value this company at a level that makes it more valuable than all of its major automotive competitors combined.

To those still skeptical about TSLA stock, this “narrative” may seem mind-boggling. Yet CEO Elon Musk can continue to make big promises, and until it becomes unmistakably clear that Musk can’t deliver, investors will carry on pricing the possibilities he’s laid out as near-certainties.

Nevertheless, that doesn't mean this narrative can’t quickly unravel. If the company fails to deliver on its plans for a low-cost, self-driving vehicle? Big downside may lie ahead.

What could Go Wrong for Tesla?

Trading sideways since February, investors are hesitant about pushing TSLA stock to an even higher valuation. On the other hand, as much remains in its favor, they haven’t felt the need to bid it down to a more reasonable valuation.

That said, this could change over the next twelve months. How? First, it could become clear that this company is not set to dominate the electric vehicle market. Its share of the overall EV market is already falling, as competition heats up in the U.S., China, and Europe.

If incumbent automakers like Ford (F), General Motors (NYSE:GM), and Volkswagen (DE:VOWG_p) (VWAGY (OTC:VWAGY)) successfully make the shift to producing mostly EVs? It may challenge the belief held by many Tesla bulls that it’ll leave the “old school” car makers in the dust once it starts producing lower-cost, mass market vehicles.

Something else that could sink its valuation: failure to deliver when it comes to autonomous vehicles. The company has not only recently announced it plans to start producing a low-cost ($25,000 sticker price) car by 2023. It has also claimed this car will be fully self-driving. With its work cut out for it, and expectations high, any sign of it falling short could mean big disappointment, and in turn a big drop in its share price.

What Analysts are Saying About TSLA Stock

According to TipRanks, TSLA stock has a consensus rating of Hold. Out of 25 analyst ratings, 12 rate it a Buy, 7 analysts rate it a Hold, and 6 analysts rate it a Sell.

As for price targets, the average Tesla price target today is $697.90 per share, implying around 5.21% in downside from today’s prices. Analyst price targets range from a low of $150 per share, to a high of $1500 per share.

Bottom Line: ‘Wait and See’ Seemingly The Best Course of Action

Company-specific risks aren’t the only concern to have about Tesla shares today. Like with other growth stocks trading at high forward valuation multiples, this is another name that could fall hard if market conditions reverse. Even Cathie Wood, a vocal bull on the stock, has started to take profit. Her firm, Ark Invest, recently sold around $109 million worth of the EV maker's shares.

With the risk disappointment/market turmoil sending it tumbling exceeding the changes it surges again, despite the narrative still surrounding it, consider TSLA stock a “wait and see” situation.

Disclosure: At the time of publication, Thomas Niel did not have a position in any of the securities mentioned in this article.

​Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of Tipranks or its affiliates, and should be considered for informational purposes only. Tipranks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. Tipranks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by Tipranks or its affiliates. Past performance is not indicative of future results, prices or performance.

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18-09-2021 02:26:00 (UTC+7)

EUR/USD

1.1731

-0.0032 (-0.28%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (7)

Sell (1)

EUR/USD

1.1731

-0.0032 (-0.28%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (7)

Sell (1)

GBP/USD

1.3741

-0.0047 (-0.34%)

Summary

↑ Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (6)

Sell (0)

USD/JPY

109.93

+0.22 (+0.21%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (6)

Sell (0)

AUD/USD

0.7274

-0.0015 (-0.21%)

Summary

Neutral

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (6)

Sell (1)

USD/CAD

1.2742

+0.0060 (+0.48%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (8)

EUR/JPY

128.97

-0.08 (-0.06%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (9)

Sell (0)

EUR/CHF

1.0938

+0.0027 (+0.25%)

Summary

Neutral

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (4)

Sell (5)

Gold Futures

1,753.05

-3.65 (-0.21%)

Summary

↑ Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (1)

Sell (8)

Silver Futures

22.415

-0.379 (-1.66%)

Summary

Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (0)

Sell (5)

Copper Futures

4.2447

-0.0368 (-0.86%)

Summary

Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (5)

Sell (2)

Crude Oil WTI Futures

72.03

-0.53 (-0.73%)

Summary

Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (3)

Sell (2)

Brent Oil Futures

75.40

-0.27 (-0.36%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (5)

Sell (3)

Natural Gas Futures

5.055

-0.280 (-5.25%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (10)

US Coffee C Futures

186.75

-1.40 (-0.74%)

Summary

Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (5)

Sell (3)

Euro Stoxx 50

4,130.84

-39.03 (-0.94%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (7)

Sell (2)

S&P 500

4,434.70

-39.06 (-0.87%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (8)

Sell (0)

DAX

15,490.17

-161.58 (-1.03%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (6)

Sell (2)

FTSE 100

6,963.64

-63.84 (-0.91%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (8)

Sell (1)

Hang Seng

24,920.76

+252.91 (+1.03%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (5)

Sell (0)

US Small Cap 2000

2,227.30

-8.98 (-0.40%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (7)

Sell (0)

IBEX 35

8,760.90

+27.20 (+0.31%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (10)

BASF SE NA O.N.

63.085

-2.125 (-3.26%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (9)

Bayer AG NA

45.07

-0.57 (-1.25%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Allianz SE VNA O.N.

190.23

-2.24 (-1.16%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Adidas AG

281.60

-3.70 (-1.30%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (6)

Deutsche Lufthansa AG

8.210

+0.209 (+2.61%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (2)

Sell (1)

Siemens AG Class N

148.76

-1.28 (-0.85%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (7)

Deutsche Bank AG

11.080

-0.025 (-0.23%)

Summary

↑ Sell

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (0)

Sell (8)

 EUR/USD1.1731↑ Buy
 GBP/USD1.3741↑ Buy
 USD/JPY109.93↑ Buy
 AUD/USD0.7274Neutral
 USD/CAD1.2742↑ Sell
 EUR/JPY128.97↑ Buy
 EUR/CHF1.0938Neutral
 Gold1,753.05↑ Sell
 Silver22.415Sell
 Copper4.2447Buy
 Crude Oil WTI72.03Buy
 Brent Oil75.40↑ Buy
 Natural Gas5.055↑ Sell
 US Coffee C186.75Buy
 Euro Stoxx 504,130.84↑ Buy
 S&P 5004,434.70↑ Buy
 DAX15,490.17↑ Buy
 FTSE 1006,963.64↑ Buy
 Hang Seng24,920.76↑ Buy
 Small Cap 20002,227.30↑ Buy
 IBEX 358,760.90↑ Sell
 BASF63.085↑ Sell
 Bayer45.07↑ Sell
 Allianz190.23↑ Sell
 Adidas281.60↑ Sell
 Lufthansa8.210Neutral
 Siemens AG148.76↑ Sell
 Deutsche Bank AG11.080↑ Sell
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank5,600/ 5,665
(0/ 0) # 809
SJC HCM5,600/ 5,665
(0/ 0) # 810
SJC Hanoi5,600/ 5,667
(0/ 0) # 812
SJC Danang5,600/ 5,667
(0/ 0) # 812
SJC Nhatrang5,600/ 5,667
(0/ 0) # 812
SJC Cantho5,600/ 5,667
(0/ 0) # 812
Cập nhật 18-09-2021 02:26:02
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ↀ Giá vàng thế giới
$1,753.63-0.5-0.03%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-IV2149021910
RON 95-II,III2139021810
E5 RON 92-II2014020540
DO 0.05S1602016340
DO 0,001S-V1637016690
Dầu hỏa1508015380
ↂ Giá dầu thô thế giới
WTI$72.03-0.61-0.85%
Brent$75.40-0.61-0.81%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD22.640,0022.870,00
EUR26.118,3927.477,69
GBP30.621,6331.901,01
JPY202,13213,83
KRW16,7120,34
Cập nhật lúc 18:53:14 17/09/2021
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