Crisis Could Lead to Opportunity for Tesla

Jan 26, 2024

Tesla (TSLA) is having a really bad day, month, and well… year so far.

Since Jan. 1, the EV stock fell from about $265 to a recent low of $182.46. The last time it saw this price was around May of last year. Should it fail here, TSLA could slip to about $150. All after the company warned of a slowdown this year after missing earnings expectations.

Adjusted EPS of 71 cents came in below expectations for 74 cents. Revenue of $25.17 billion also came in below $25.6 billion estimates. Its automotive revenue came in at $21.6 billion, which was up 1% year over year.

Its outlook made everything worse.

According to the company, it now believes volume growth “may be notably lower” than the rate observed last year, as noted by CNBC. The company cautioned investors that it’s “currently between two major growth waves.”

Analysts took their estimates down as a result. RBC analysts lowered their price target from $300 to $297. Canaccord Genuity lowered its price target to $234 from $267.

However, keep an eye on Tesla, technically. At the moment, it’s severely oversold on RSI, MACD, and Williams’ %R, and could potentially see at least a dead cat bounce from that. In fact, if you look at every major pullback in TSLA over the last two years – with those three indicators – you’ll see that TSLA was quick to bounce back a good number of times.

Also, while everyone else runs scared from TSLA, remember this.

Warren Buffett, for example, tells us to be “fearful when others are greedy, and greedy when others are fearful.” Sir John Templeton taught us to buy excessive pessimism.

Even Baron Rothschild once told investors, “The time to buy is when there’s blood in the streets, even if the blood is your own.”

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