Should You Buy Tesla Shares

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Should You Buy Tesla Shares

Should You Buy Tesla (Tsla) Shares?

The Tesla (TSLA) share price continues to rise as investors are optimistic about the company's earnings. But it's also a reality that Tesla (TSLA) is now facing multiple headwinds.

One big setback for Tesla (TSLA) is the end of the EV sales credit by the US government. The scheme ended on 30th September, which will likely boost the demand for sales in the short term.

Tesla Sales Are Expected To Decline

But beyond that, everyone agrees that some sort of decline will be seen in the sales of Tesla's EVs in the US market. Meanwhile, other companies like General Motors and Ford have reported strong sales.

In Q3, Tesla reported 7% increase in global deliveries, and there are reports that stronger sales in the US helped offset the weak demand in the EU.

But if we take a bird's-eye view of Tesla (TSLA), it becomes clear there are more negative news stories than positive ones. It's clear that the higher demand during Q3 will be replaced by a drop in the next quarter.

Although the company has introduced newer and affordable cars, the sales are still expected to decline. Also, the company is no longer the only EV maker in the market... There are many big players in the EV space, which means there's plenty of competition for Tesla (TSLA).

And we have yet to get any details about the launch of the robotaxi service. That's the next big project for Tesla (TSLA), but we are still short on details.

Given all of this, it makes sense to take a step back and avoid buying the Tesla shares. But if the Tesla (TSLA) shares price declines and reaches a more reasonable level, then you can consider buying the stock.

But for now, the Tesla (TSLA) stock faces way too many headwinds and isn't a good option at all. Especially with the increased competition, the company's market share is no longer as massive as it used to be!

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