DNBSTOCK/iStock Editorial via Getty Images
Tesla, Inc. (NASDAQ:TSLA) has been full self-driving (“FSD”) in reverse, with the shares down 35% year-to-date near a ten-month low. The backdrop includes not only the last disappointing earnings report but otherwise terrible sentiment, compounded by a string of new Wall Street sell ratings.
We last covered TSLA in early 2023 with a bullish view, suggesting any weakness was a buying opportunity at the time. While there was some upside from that point, a lot has changed and that article is now underwater. We’re taking the opportunity to reassess our view with a more bearish tone and an expectation for more near-term downside.
While the electric vehicle (“EV”) maker is no stranger to volatility, what’s different here is that in contrast to prior corrections, there is a sense that this current weakness is based more on company-specific factors rather than just the macro environment. That’s…
