Tesla’s Monday was quite eventful, with much news coming forward. Investors had to contend with a lot of rather pessimistic data surrounding the company. However, Wall Street and the markets in general do not seem to have reacted much despite this and still invest in Tesla stock. It may just be that concerns are focused elsewhere.
Tesla reported on their sales in the 3rd quarter. They delivered 430,000 new vehicles, this being 25,000 lower than the expectations. Other rival companies reported better relative numbers. For example, Rivian sold 1,500 more units than analysts expected, and BYD manufactured more vehicles than Tesla had, which is a first.
However, investors did not seem to show any signs of worry at this development. Tesla’s stock rose by 0.5% this Monday. We should note that the stock has suffered considerable losses in the past few months. It had reduced by more than 10%, worse even than important indices like the S&P 500. It is difficult to know how to buy Tesla stock in this environment.
Analyzing Tesla Stock: Mixed Analyst Opinions
Analysts note that these numbers are still relatively healthy despite relative underperformance compared to its history. Is Tesla stock a buy right now? Many say it is. However, there are a few naysayers among analysts.
Ryan Brinkman, a J.P. Morgan analyst, suggests that investors should sell. He states that the main reason investors do not feel concerned is due to the pause in manufacturing that Tesla is having. However, despite the pause, he still believes Tesla should have performed better in sales. After all, Tesla still had plenty of leftover vehicles from previous manufacturing quarters.
He also stated that general economic explanations are insufficient, such as interest rates or lowering consumer confidence data. Other industries have fared well despite such figures.
Tesla further went on to drop by 1% this Tuesday, which tracked with the downgrade in index numbers. We shall see if traders still want to invest in Tesla stock soon.
