Tesla Stock: Sell The Rip


  • 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.

IF Metall representatives Emma Hansson and Ola Sjösten outside Tesla"s service center in Segeltorp, Stockholm during the first day of the nation-wide strike.

Magnus Kvandal

Intro & Thesis

If you’ve been following me for a while, you’ve probably read some of my previous 15 articles on Tesla, Inc. (NASDAQ:TSLA) stock. I downgraded the stock back in April 2024

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Hold On! Can’t find the equity research you’ve been looking for?

Now you can get access to the latest and highest-quality analysis of recent Wall Street buying and selling ideas with just one subscription to Beyond the Wall Investing! There is a free trial and a special discount of 10% for you. Join us today!

Leave a Reply

Your email address will not be published. Required fields are marked *