Tesla Stock Down

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Tesla Stock Down

Tesla Stock Down By 29%

Tesla (TSLA) stock has almost lost a quarter of its value in a span of a few months. Now, this raises the question: Is it the right time to buy the Tesla (TSLA) stock?

Tesla (TSLA) is a one-of-a-kind stock that always hits new highs, even when it is overvalued. So, we can't evaluate the Tesla (TSLA) stock just like we would like at other normal stocks.

Tesla Faces Competition

Since December, the Tesla stock has lost 29% of its value and has shed 17% in a month. However, the Tesla stock has gained 34% since the victory of Donald Trump.

If we look at Tesla's stock value over one year, it is almost up by 69%. This is similar to the performance of Nvidia.

The past shows us that Tesla always has something that worries the investors. Even today, Tesla is facing tough competition from other EV makers, especially those from China.

This has led to a decline in Tesla's market share in the Chinese and European markets. In addition, consumer spending around the world remains weak.

This means people are not that interested in buying expensive items, like a new car. So, the whole EV market is going through a downturn, and Tesla is also feeling the heat.

Last but not least, Tesla stock is also overvalued based on its forward earnings and sales. In addition, the PEG ratio of Tesla is around 4.7 which is a lot higher than other stocks in the Magnificent Seven group.

However, the one thing that makes for a bullish case is the Optimus Robot (Tesla Robot). The company wants to put these robots to work in the Tesla factories.

Overall, the Tesla stock doesn't look that exciting, given all the problems it is facing. However, things could change for Tesla stock if it drops further & is no longer overvalued.

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