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Why the Recovery in Tesla Stock Has Big Runway Ahead

Shares of Tesla (NASDAQ:TSLA) tumbled lower through the first five months of 2019 as Wall Street seemed to throw in the towel on the Tesla stock. Specifically, Wall Street interpreted falling delivery numbers from Tesla in early 2019 as a sign that demand was wavering and competition was building, a double headwind that would ultimately doom TSLA stock. As this thesis became the consensus, Tesla dropped from $330 to $175. But, I think Wall Street dramatically misinterpreted this situation. Instead, they were a sign that the whole EV market needed to take a breather after a gang-busters multi-month stretch to end 2018. Instead, it just took a breather, and is now ready to get back to firing on all cylinders. Because of this, and because Tesla stock fell so far on a flawed bear thesis, the mid to late 2019 recovery in TSLA stock has a long runway to push the stock significantly higher.

First found on: investorplace.com And then on: 1 other references

1 other references