Main financial assets discussed: Tesla, Inc. (NASDAQ:TSLA)
Top 3 key points:
1. Tesla bears argue that the company's profitability is not sustainable and that its valuation is too high compared to other automakers.
2. The common sense perspective counters these concerns by highlighting Tesla's focus on market share, cost reduction, and future revenue opportunities.
3. The article emphasizes the importance of considering Tesla's mission, innovation, financial strength, and talented leadership team when making investment decisions.
Recommended actions: **Buy** (based on the author's bullish stance on Tesla)
Main topic: VinFast's remarkable debut on the Nasdaq public exchange and its ambitious plans to break into the U.S. marketplace.
Key points:
1. VinFast's stock price soared 68% on its debut, giving it a valuation of $86 billion, surpassing established automakers like Ford, GM, and Stellantis.
2. Despite a subsequent drop in stock price, VinFast still maintains a market cap ahead of other automakers.
3. VinFast aims to enter the U.S. market by building a $2 billion EV factory in North Carolina and opening showrooms in California and other states.
Hint on Elon Musk: Elon Musk is the CEO of Tesla, a prominent electric vehicle manufacturer, and the search for the next Tesla may be driving investor interest in VinFast.
Huge price reductions and increased availability are driving growth in the electric vehicle market, which saw record sales in 2023, as major manufacturers like Tesla, Ford, and General Motors lower their prices and pass on cost savings from raw materials to consumers.
Tesla is predicted to reach a value of $1.00 by the end of the year, and despite mixed opinions on its quality, it is seen as a dominant force in the automotive industry similar to other successful tech companies like Apple, Nvidia, Google, Amazon, and Microsoft.
Electric vehicle stock VinFast experienced a steep decline, plunging nearly 40% after a rapid rise that puzzled analysts, highlighting the volatility of the stock.
Tesla's stock is surging and flirting with a buy point due to positive buzz around the company's upgraded Model 3 and upcoming Cybertruck, as well as the increase in Tesla insurance registrations in China.
Tesla's stock is consolidating near the top of Tuesday's trading range, forming an inside bar pattern, which suggests a potential bullish continuation in the near future, but if the stock fails to reclaim the 50-day SMA, it may experience increased volatility.
Tesla's stock performance has been mixed as of late, facing increasing competition and pressure to release the Cybertruck, but it remains a dominant EV maker with a strong charging network.
Tesla's latest price cuts have left existing customers feeling frustrated and resentful, as they now see their vehicles lose value, while potential buyers hesitate to make a purchase fearing further reductions.
Shares of Tesla Inc. rose 2.7% to buck the trend of weakness in the electric vehicle market, as the stock looks to rally over 20% above its recent low.
Tesla stock experienced a decline, potentially due to market conditions or factors related to Munich.
Tesla's stock is rising after an optimistic report from Morgan Stanley about Tesla's Dojo supercomputer, which could add about $500 billion in value to the company and potentially become a direct revenue generator.
Tesla's stock broke through upside technical resistance and entered a fresh bull market, thanks to bullish fundamental factors such as an analyst upgrade and the labor battles faced by its rivals.
Analyst suggests that while Tesla is not a good buy at the moment, stocks of Ford and GM are worth considering.
Tesla's emphasis on price cuts to drive sales growth may hinder its ability to achieve higher margins and long-term profitability, leading Needham analyst Chris Pierce to have a "Hold" rating on the stock and believe that the company is on a path to becoming a mass-market OEM at a faster pace than previously expected.
Tesla was the most shorted large-cap stock in the US for the third consecutive month in August, but saw a 10% rally after a bullish research note from Morgan Stanley.
Tesla's series of price cuts could continue into next year, negatively impacting its margins and putting pressure on the electric-vehicle industry.
Goldman Sachs lowers its profit outlook for Tesla due to lower average selling prices and predicts that the company may cut vehicle prices in 2024 to maintain high volumes, leading to a decrease in Tesla stock.
Tesla stock is experiencing a decline due to the impact of China.
Tesla's stock is nearing crucial support levels, potentially causing turbulence for investors as it descends from its recent peak.
Higher interest rates are causing a downturn in the stock market, but technological advancements in recent decades may provide some hope for investors.
Tesla stock has received an upgrade despite falling 6.8% in September due to downgrades and estimate cuts, providing some positive news amidst concerns over delivery outlook.
Tesla continues to dominate the US electric vehicle market, outselling the combined sales of its 19 closest competitors during the first half of 2023, illustrating the company's significant lead and dominance in the industry.
Tesla may fall short of third-quarter delivery estimates due to factory shutdowns and soft demand, but analysts believe that upgrades and refreshed models in the coming months could boost sales and competition with rivals like Ford and BYD.
Tesla's Q3 delivery numbers are expected to be lower due to production slowdowns, but analysts believe the introduction of new products and positive developments will drive growth in Q4, prompting a Buy rating on the stock.
Sales of Tesla electric cars declined in the third quarter due to production slowdowns, raising concerns about demand even after the company cut prices, while facing increased competition from other carmakers and new competitors like Rivian.
Wall Street is optimistic that despite recent bad news, Tesla stock will continue to perform well.
Tesla stock faces new troubles as delivery numbers disappoint and sale prices decline, while CEO Elon Musk faces legal troubles over Twitter disclosure; however, analysts still back Tesla with a Moderate Buy rating and a 9.24% upside potential.
Utilities stocks have experienced a significant drop in value due to a spike in long-term interest rates, presenting a buying opportunity for long-term investors who are focused on quality companies with growing sales, earnings, and dividends.
Tesla's sales of China-made electric vehicles decreased by 10.9% in September compared to the previous year, while Chinese competitor BYD experienced a 42.8% growth in passenger vehicle deliveries.
Tesla's stock dipped by 1% after sales of its China-made electric vehicles decreased by 10.9% in September, with Model 3 and Model Y sales down 12% from August to September.
Tesla's recent stock splits and its strong performance indicate solid fundamentals and growth prospects, leading to a bull-case price target of $2,500 per share by 2027, implying an 860% upside, according to Cathie Wood's Ark Invest. While the assumptions may be outlandish, Tesla's strong foothold in the electric car and autonomous vehicle markets, as well as its plans for FSD software and robotaxi services, make it a potential investment opportunity for risk-tolerant investors.
Tesla's market share in the electric vehicle (EV) market in the United States has fallen to its lowest ever, despite a price war, but the launch of its Cybertruck could reverse the trend, according to a report by Cox Automotive.
Tesla's early lead in the American EV market is slipping as other companies, such as Chevrolet and Volkswagen, experience significant sales growth, resulting in Tesla's reduced market share and the need for further innovation.
Tesla's share of the U.S. electric vehicle market has dropped to 50% as new competitors, including EV startups and legacy automakers, gain market share due to increased competition and the release of their own electric models.
US electric vehicle sales reached a new milestone in the third quarter, with a 50% increase from last year, but Tesla's market share is shrinking as other automakers see significant EV sales gains.
US electric vehicle (EV) sales reached over 313,000 in Q3, a nearly 50% increase from a year ago, with Tesla accounting for 50% of total sales, but its market share is decreasing; meanwhile, the overall EV market share reached 7.9%, driven by higher inventory, more product availability, and downward pricing pressure, according to Kelley Blue Book.
The average transaction price for new electric vehicles in the US has dropped over 22% compared to last year, driven by Tesla's price cuts, leading to increased demand and growth in EV sales.
Tesla's third-quarter profit estimates have dropped by almost 50% this year due to aggressive price cuts, but the stock continues to rise, adding over $420 billion in market value, creating conflicting signals about the company's future prospects.
Traders anticipate less volatility in Tesla stock following the release of the company's third-quarter results, with options pricing indicating a projected move of 5.6% in either direction, lower than the average historical move of 9.4% for the past five quarters.
Despite an earnings miss, Tesla investors remain positive due to optimistic news on gross margins and the Cybertruck, focusing on the company's ability to stay ahead of its competitors and its plans for future growth.
Tesla, along with General Motors and Ford, is cautious about expanding electric vehicle production capacity due to economic uncertainties and fears of a slowdown in demand, with Tesla CEO Elon Musk expressing concerns about higher borrowing costs and their impact on affordability.
Analysts have lowered their price targets for Tesla stock after the company reported disappointing Q3 earnings, raising questions about its near-term strategy and growth potential in 2024. Despite this, Tesla's stock had surged earlier in the year as investors remained optimistic about the company's long-term growth.
Tesla's position in the global electric vehicle market is slipping, particularly in China, where it has fallen behind its competitors and struggles to offer cheaper options, while also facing intense competition and heavy subsidies from local manufacturers.
The stock market rally faces further losses as volatility increases and the 10-year Treasury yield reaches almost 5%, but there is hope for a bounce as market fear gauges rise; Tesla plunges in volume due to weak earnings and a lack of growth, while stocks like Adobe, Arista Networks, Microsoft, Palantir Technologies, and Meta Platforms are worth watching for potential buying opportunities.
Tesla's price cuts and declining profitability raise concerns about the sustainability of its high stock market valuation and whether it can maintain its lead in the electric vehicle industry amid growing competition.
Tesla's stock was up 79% for the year in 2023, but recent events and price cuts have led to a 15% drop from the previous week and a 24% drop from this year's high in July, affecting the company's profit margins.
