Tesla Stock Is Still Worth Buying

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Wall Street bargain-hunting and positive news have not been enough to make Tuesday’s session more green. Tesla (NASDAQ:TSLA), however, fell with the best of them. TSLA stock was down almost 7% for the day.
While TSLA stock is declining and has been a difficult investment in 2022 due to its low price, the future looks bright for Tesla shareholders. Let’s take a look at the pros and cons of Tesla stock and see if it makes sense to invest in long-term strategic investments like Tesla stock. Tesla and its CEO Elon Musk are not under the bearish spotlight for once in a while. However, that doesn’t necessarily mean there aren’t potential unfinished bearish business.
Bears in the Driver’s Seat at TSLA Stock

Tesla has been hit the hardest by Covid-19’s effects. In April, the EV’s Shanghai Gigafactory temporarily closed. Tesla’s continuing challenges in obtaining critical nickel or ever-more expensive materials like lithium have led to rising production costs and increased risk of not meeting vehicle forecasts.

There are also the tabloid-style headaches that TSLA stock has caused by Musk or pointed directly at him.

TSLA stock has been affected by Elon’s bid to purchase his preferred platform Twitter (NYSE.TWTR) in April. In preparation for the deal, Elon has already sold $8.5 billion of his TSLA stake. A successful bid might prove to be more difficult, as Elon’s TSLA stock holdings could make the takeover even more costly.

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Tesla investors also have concerns about the acquisition. Some worry that Musk could lose his focus on the EV market’s crown jewel. This could be costly for TSLA stock.

Finally, the allegations against SpaceX include a $250,000 payment for sexual misconduct accusations with an attendant on a SpaceX corporate jet in 2016. The Tesla CEO calls the allegation “utterly false.”

Why Bulls Should Save Money in TSLA Stock

Tesla is rife with uncertainty these days. TSLA stock worries are largely rumours until they are proven otherwise.

Despite headline-worthy innuendos today, Tesla’s Shanghai Gigafactory has returned to production levels of 1,000 EVs that were last seen before April’s shutdown. Executives believe that Tesla can build 2,600 vehicles per day, which will allow it to reach its goal of 1.5 million EVs.

According to The Motley Fool, Tesla’s predicted growth in vehicle deliveries of 50% and huge profit margins mean that shares trade at less than 50x this year’s earnings. TSLA stock is a solid investment option for those looking to purchase growth at a high valuation.

Investors won’t be able to argue with a Tesla price chart that appears like it’s for sale right now.

Shares fell from their Covid-based uptrend of February. A cup-shaped base, a double bottom pattern, and most recently a 50% retracement level have all been seen. An oversold TSLA stock is a contrarian, value driven purchase.

How to Smartly Buy TSLA Stock

To be fair, and given the market’s continued risk-averse behavior today, purchasing TSLA stock could seem wildly premature. As we enter the notoriously hot summer months, back-up-the truck conditions for buyers could be available from $350 to $500 per share.

Nevertheless, before I buy Tesla, I would wait for either one or two things to happen.

First, let’s hope Wall Street isn’t too rattled to offer a delivery for TSLA stock closer to $500. The first purchase could be made by investors, who may then become less strict in locating a bottom.

If sentiment improves sooner than expected, a weekly bottoming candlestick backed by improving stochastics indicators would be a better approach to buying Tesla. This makes sense at this point.

If you decide to take Tesla stock, make sure you have options that can be used as a fully-hedged collar. Investors can ride bullish trends and reduce exposure to larger bear markets by investing smartly.