From Nasdaq: 2024-04-02 04:47:00

Tesla (NASDAQ: TSLA) reached an all-time high of $409.97 in November 2021, but has since dropped nearly 56%. Weak EV demand, China’s EV market slowdown, and Tesla’s declining margins due to price cuts are to blame.

Price cuts aim to boost demand, with Tesla being the most profitable EV company. Despite margin reduction, the strategy may attract more customers due to competitors’ inability to afford such cuts.

New opportunities include next-gen vehicle platform, targeting profitability despite price cuts. Tesla’s autonomous driving technology, including FSD beta V12, and AI chips for robotaxis, offer growth potential.

Trading at 5.9 times sales, lower than historical averages, Tesla presents an appealing entry point for long-term investors ignoring short-term fluctuations. With focus on growth and new technologies, Tesla’s potential outweighs current valuation for investors ready for a long-term play.



Read more at Nasdaq: 1 Growth Stock Down 56% to Buy Right Now