Electric vehicle giant Tesla, Inc. (TSLA) in Austin, Tex., designs, develops, manufactures, leases, and sells electric vehicles and energy generation and storage systems. It was recently removed from the S&P 500 ESG Index. The stock has declined 12.9% in price over the past month and 33.8% over the past six months to close yesterday's trading session at $758.26. In addition, it is currently trading 39% below its 52-week high of $1,243.49, which it hit on Nov. 4, 2021.
Wedbush and Daiwa Capital analysts slashed TSLA's price target to $1,000 from $1,400 and to $800 from $1,150, respectively.
Also, its 27.10% trailing-12-month gross profit margin is 24.4% lower than the 35.82% industry average. Furthermore, supply chain challenges, semiconductor chip shortages, COVID-19 outbreaks in China, and high inflation make the stock's near-term prospects uncertain.
TSLA is currently trading below its 50-day and 200-day moving averages of $906.57 and $912.94, respectively, indicating a downtrend. Furthermore, it could keep retreating in the near term due to concerns over increased raw materials costs and stalled factory operations. Also, the stock looks overvalued at the current price level, and I think it could be wise to wait for a better entry point in the stock.
For whether to continue to wait? Do you have other views? Looking forward to more views
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