Tesla's stock experienced a 20% drop but is still up 14% in the last three months.

From Nasdaq: 2024-08-08 01:49:00

Tesla’s stock has dropped -20% over the last month, falling under $200 a share after previously nearing its 52-week high of $278.98. Following a disappointing Q2 report, TSLA posted lower earnings of $0.52 per share, down -43% from the previous quarter and missing estimates by -16%.

Despite the recent selloff, Tesla’s stock is still up +14% in the last three months, outperforming the S&P 500 and Nasdaq. The company’s quarterly sales reached a record of $25.5 billion, up 2% from the previous quarter but lower margins were seen due to price cuts on EV models.

Technical analysis shows TSLA moving below its 50-day and 200-day SMA, signaling a bearish trend. However, the correction has brought Tesla’s valuation closer to its median at 87.1X forward earnings, down from its high of 141.2X.

While Tesla’s stock remains in correction territory, the long-term outlook is still positive. With a Zacks Rank #3 (Hold), investors are advised to watch for better entry points as Tesla’s valuation normalizes. Experts suggest tracking 7 elite stocks for potential early gains.



Read more at Nasdaq: Will Tesla’s Stock Ride Higher as Markets Stabilize?