Tesla (TSLA) stock price is down today. But it is still very close to ,500. Is the stock a good buy now or maybe it needs to drop by at least ,000 to attract investors?Tesla Inc (NASDAQ: TSLA) stock price was slightly down in the pre-market and is 3% down now. Currently, TSLA is trading at slightly below ,500, at ,498.02.Experts suppose that the stock price could be much higher than current levels. That is if not for the COVID-19 pandemic. However, even the current price level has made the EV maker become the most valuable carmaker in the world currently. But It has led many to believe thatTesla (TSLA) stock price is overheating. Sources say that stock trader Boris Schlossberg has noted that he would not buy Tesla (TSLA) until the stock drop by ,000. Speaking to CNBC’s “Trading
Topics:
<title> considers the following as important:
This could be interesting, too:
Chayanika Deka writes ISIS Crypto Fundraiser Mohammed Chhipa Faces 20 Years After Conviction in Virginia
Chayanika Deka writes South Korean Ex-Lawmaker Faces 6-Month Prison Sentence Over Hidden Crypto Holdings
Felix Mollen writes Crypto All-Stars Set for DEX Launch Monday 23rd December After M Presale – Price Pump to Come?
Chayanika Deka writes Treasury Cracks Down on North Korean Sanctions Evasion Through Crypto Laundering
Tesla (TSLA) stock price is down today. But it is still very close to $1,500. Is the stock a good buy now or maybe it needs to drop by at least $1,000 to attract investors?
Tesla Inc (NASDAQ: TSLA) stock price was slightly down in the pre-market and is 3% down now. Currently, TSLA is trading at slightly below $1,500, at $1,498.02.
Experts suppose that the stock price could be much higher than current levels. That is if not for the COVID-19 pandemic. However, even the current price level has made the EV maker become the most valuable carmaker in the world currently. But It has led many to believe thatTesla (TSLA) stock price is overheating.
Sources say that stock trader Boris Schlossberg has noted that he would not buy Tesla (TSLA) until the stock drop by $1,000. Speaking to CNBC’s “Trading Nation” Schlossberg compared Tesla (TSLA) stock prices and those of two big names at the same stage of their growth: Coca-Cola and Walmart.
According to Schlossberg, The Coca-Cola Company (NYSE: KO) had generated $500 million in revenues in 1965. Its stock prices didn’t move much. By 1985 the company had $8 billion in revenues. The same thing occurred.
Walmart Inc (NYSE: WMT) also had similar numbers as its market capitalization moved across $200 billion. Stock prices moved similarly. Walmart beat Sears to become America’s top retailer at the time.
Boris has been critical of Tesla’s (TSLA) growth. He said:
“I think it’s a very, very big stretch that Tesla is going to really dominate the EV industry.”
Schlossberg continued:
“Even if you assume that it eventually grows into an actual profitable company, it will then just completely die on the vine because then the market is going to judge it by its real potential.”
Schlossberg’s analysis holds for many industries. The introduction of competition draws capital away from market leaders who have broken ground in new fields.
Tesla (TSLA) is currently the clear market leader in the electric vehicle field worldwide. Its technology is second to none. Schlossberg’s predictions will come to pass in the future. Not immediately. The reason for this is that massive amounts of money, blood and sweat have gone into Tesla’s R&D.
In terms of Tesla (TSLA) becoming a real business, Schlossberg is wrong on that one. The EV maker is delivering as many units as it can despite a global pandemic.
Consistent Profit for Tesla (TSLA) Is Possible
Anytime within the next 18 months going by Tesla’s growth rate in terms of deliveries, we will see the company turn a consistent profit.
Because of these and many other reasons, sources say that Wedbush tech analyst Dan Ives thinks that Tesla (TSLA) stock prices will remain bullish for a while.
Ives thinks that Tesla (TSLA) stock prices could reach $2,000. He said on Yahoo Finance’s The First Trade:
“Tesla is miles ahead of competitors. It’s going to dominate 80% to 90% of the EV [electric vehicle] market share going forward and have, what I believe, could be 1 million deliveries by 2022. And remember, right now Tesla is a Teflon-like model.”
While this may be true, there is still the risk of Tesla CEO Elon Musk while being in a genius category is known for his outbursts.
Such “spur of the moment” outbursts come along with the creative territory. It brings to mind concerns by many about Musk being the sole reason for the massive growth in stock prices.
Whatever the case, Tesla has a great product and will be the market leader for a while.
Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.