What Should Investors Do With Tesla (TSLA) Stock?
Shares of Tesla TSLA plummeted Monday after chief executive Elon Musk once again found himself in hot water after he posted a rude comment about a British cave explorer regarding the Thailand cave rescue mission. Although the CEO’s statements were crass, they don’t really impact Tesla’s core business. So let’s assess TSLA stock at what could be a buying point. Investors clearly don’t love Musk’s use of Twitter when it backfires on him, but there is no doubt that much of Tesla rise is due to the CEO’s vision of the future. But that real questions are: what’s going on with Tesla now and what should investors expect from the company’s second-quarter financial results? Tesla noted that this was the first time production of its mass-market Model 3 topped combined Model S and X rates, helping it make Q2 “the most productive quarter in Tesla history by far,” according to a company statement. This alone might be good enough for some investors to consider buying Tesla stock. Yet, it is worth pointing out that Tesla’s earnings estimate revision activity has trended in the wrong direction recently, which helped Tesla earn a Zacks Rank #3 (Hold). Therefore, it might still be time for investors to monitor TSLA, especially as Musk continues to grab headlines for the wrong reasons.