Wait! Don’t Buy Tesla Stock Before This Crucial Date.
Elon Musk, the CEO of electric vehicle (EV) manufacturer Tesla (NASDAQ:TSLA), is unpredictable. That’s one of the reasons TSLA stock can soar one month but then plunge the next month. The best strategy right now is to avoid the Tesla roller coaster until more data comes in, which will happen next month.
At the same time, it’s important to keep track of the major news items pertaining to Tesla. As we’ll see, Tesla has been the center of attention for multiple reasons. There’s little to no consensus about Tesla’s future prospects — but then, that’s probably why Musk and his company continue to captivate investors’ attention.
Tesla Share Price Predictions: $24 or $2,000?
When I say that there’s no established consensus about Tesla, I’m not exaggerating. On one end of the bear-bull spectrum, GLJ Research analyst Gordon Johnson believes that TSLA stock is worth around $24 per share. Meanwhile, Cathie Wood of ARK Invest reportedly expects the Tesla share price to reach $2,000 in the coming years. (On the other hand, Wood evidently sold 170,000 Tesla shares not long ago.)
This, along with Musk’s unpredictable temperament, only adds to the market’s confusion about Tesla. Some folks admire Musk, while famous investor Jeremy Grantham reportedly called the Tesla CEO a “wonderful propagandist” who generated money “out of thin air” to make his company succeed.
At the end of the day, it’s wise to ignore the extremely low and high TSLA stock forecasts. Instead, focus on the coming quarters and take note of Tesla’s headwinds and tailwinds. For example, Tesla will probably benefit from the ongoing United Auto Workers (UAW) strike in Detroit.
Furthermore, Tesla appears to be expanding abroad, as the company has “drawn up plans to make and sell battery storage systems in India,” according to Reuters. Not only that, but Tesla has “been in talks about setting up a new” EV factory “in India to build a car priced around $24,000.”
TSLA Stock Traders: Mark These Two Dates
Along with all of those considerations, investors also need to take note of Tesla’s challenges in China. From Sept. 11 to Sept. 17, the automaker only sold 240 Tesla Model 3 sedans in China. In contrast, the typical Model 3 sales figure in China has been between 2,000 and 3,000 units per week.
Clearly, Tesla’s investors have a lot to think about. Their concerns are likely to compound in October, as there are two crucial dates to mark down. The first one is Oct. 2, as Tesla is expected to release its latest round of delivery data on or around that date.
In addition, Tesla is getting ready to report its third-quarter 2023 earnings results on or around Oct. 18. Barclays analysts are bracing for disappointment, as they “expect 3Q deliveries of 455k units, a miss vs. consensus of 463k, and also below our currently published [estimate] of 483k.”
TSLA Stock: Hold It, But Don’t Buy It Now
I’ve thrown a lot of information at you, and it’s probably hard to keep track of it all. And apparently, there’s more data coming next month. Hence, you’ll need to be nimble if you intend to trade Tesla shares long or short during the next couple of weeks.
Instead of trying to be nimble and outsmart the market, it’s prudent to stay out of the trade for a little while. I’m not saying that anyone needs to dump his or her Tesla shares. If you have a bullish long-term outlook for Tesla, it’s fine to hold your share position.
Yet, there’s no need to hastily add to your TSLA stock position right now. We’ll all be privy to new information about Tesla in October.
Consequently, investors should let the stock make its volatile moves in the near term. Then, after the Oct. 18 quarterly data release, decide whether you’re ready to start or add to your share position in Tesla for the long haul.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
