Has Tesla Stock Bottomed Out? Fund Manager Says Much Of Bad Fundamentals News 'May Already Be Discounted'
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) is showing signs of recovery despite recent sell-offs and negative fundamentals, according to Future Fund Managing Partner Gary Black. Black highlights a balance between declining fundamentals and excitement over Full Self-Driving (FSD) and robotaxi developments. He notes a significant drop in earnings estimates for 2024 and 2025 but suggests that much of the negative news may already be factored into Tesla's stock price. Black also points out the potential risk of price cuts due to high Model Y inventory levels and the importance of Tesla's guidance on delivery growth and earnings estimates for stock movement.
April 11, 2024 | 10:14 am
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Tesla, Inc. is experiencing a potential recovery phase, with Gary Black suggesting that negative fundamentals might already be reflected in its current stock price. The focus on FSD, robotaxi developments, and the strategic management of product announcements could influence short-term stock movement.
The analysis by Gary Black suggests that despite the decline in earnings estimates for 2024 and 2025, the anticipation for Tesla's FSD and robotaxi projects, along with strategic product announcements, could mitigate negative impacts. The potential for price cuts due to high Model Y inventory levels and the guidance on delivery growth are critical factors. However, the belief that much of the negative news is already accounted for in the stock price suggests a positive short-term outlook.
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IMPORTANCE 90
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