Up 100% This Year, Is Tesla Stock Still a Buy?
(NASDAQ: TSLA) has been on a tear, with its stock price roughly doubling since the start of 2023. Investors have reacted positively toward macroeconomic tailwinds and continued top-line growth. That said, a high valuation and rising competition are potential challenges for the automaker. Let's weigh the pros and cons of investing in the stock.
While Tesla's shares are booming on a year-to-date basis, they have given up some gains following weaker-than-expected second-quarter earnings. The results, reported on July 19, were great from a top-line perspective. Revenue rocketed 47% year over year, driven by continued growth in vehicle production and delivery (up a whopping 83%). But many investors may have been disappointed by the bottom line.
While Tesla's revenue increased sharply, this did not translate to improved profitability. Income from operations fell 3% to $2.4 billion, driven by rising competition in the electric vehicle (EV) industry, which is pressuring Tesla and other automakers to slash prices.
Source Fool.com
Tesla Inc Stock
Our community is currently high on Tesla Inc with 112 Buy predictions and 44 Sell predictions.
On the other hand, the target price of 286 € is below the current price of 305.0 € for Tesla Inc, so the potential is actually -6.23%.
