Tesla Stock At A Make-Or-Break Level: My Strategy For Buy, Sell, Or Hold

Summary:

  • Tesla, Inc. stock has outperformed its big tech peers since late October 2023 due to its interest rate-sensitive business; however, Tesla is still playing catch up.
  • Technically, Tesla is finely poised, with the stock primed for a big breakout or breakdown out of a triangle pattern formed on its chart.
  • Plunging yields (easing financial conditions) could alleviate Tesla’s demand and margin pressures in 2024; however, the stock is richly priced at ~65x forward P/E.
  • In my view, Tesla’s valuation leaves little upside and no margin of safety. Read on to learn more.

Tesla Shanghai Gigafactory

Xiaolu Chu

Introduction: Tesla Is Still Trailing Its Big Tech Peers, Can It Catch Up In 2024?

Amid a sharp decline in interest rates, Tesla, Inc. (NASDAQ:TSLA) stock has handsomely outperformed its big tech peers since 30th October


Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


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