A person who thinks Tesla's stock price is too high, wonders if other people on Wall Street are also thinking the same thing and looking for a new story to explain why Tesla is worth so much. The article talks about different parts of Tesla's business that might make it more valuable in the future. Read from source...
- The title is misleading and clickbaity, implying that Wall Street is looking for a new narrative to justify Tesla's high stock price, when in fact it is just one bear's opinion.
- The article uses vague terms like "energy hype" and "new narrative" without defining them or providing any evidence or data to support the claim that Wall Street is looking for such a thing.
- The author cherry-picks some negative analyst notes and compares Tesla's stock price with its business value, without considering other factors like growth potential, competitive advantage, customer loyalty, brand value, etc.
- The article does not mention any positive or bullish views on Tesla, nor does it acknowledge the possibility of a rebound in the EV market or the success of Tesla's other businesses like energy and autonomous driving.
- The tone of the article is pessimistic and dismissive, implying that Tesla's stock price is unsustainable and bound to crash, without considering the possibility of future developments or innovations that could change the game for Tesla and the EV industry.
- The article ends with a mention of another article by a bullish analyst who wants Tesla to improve its communication strategy, which is irrelevant and confusing in this context.
The article discusses the bearish view of Tesla's stock price, which is considered too high by some analysts. The main arguments against Tesla are its overvaluation, lack of profitability, and dependence on government subsidies for its EV business. On the other hand, some bullish investors still see potential in Tesla's energy and battery storage businesses, as well as its innovative capabilities and market leadership.
Based on this information, here are my comprehensive investment recommendations:
1. For short-term traders who want to profit from a possible decline in Tesla's stock price, they could consider using options strategies such as put options or spreads. This would allow them to benefit from a downside movement without having to sell the underlying shares. Alternatively, they could also use margin trading or short selling, but these methods involve higher risks and more regulatory scrutiny.
2. For long-term investors who believe in Tesla's vision and growth potential, they could consider buying the shares at a lower price and holding them for years. They should be aware of the inherent volatility and uncertainty in the EV market, and be prepared to withstand short-term fluctuations. They should also diversify their portfolio by investing in other related sectors such as energy storage, renewable energy, and autonomous driving.
3. For risk-averse investors who want to avoid Tesla altogether, they could consider investing in other companies that are involved in the EV ecosystem, such as battery manufacturers, component suppliers, or charging infrastructure providers. These companies may have more stable and predictable revenue streams, as well as lower valuation multiples than Tesla. Some examples of these companies are Panasonic (OTC:PCRFY), LG Chem (KRX:051900), CATL (SZ:3864), Bosch (ETR:RobertBosch), NIO (NYSE:NIO), ChargePoint (NYSE:CHPT), and Blink Charging (NASDAQ:BLNK).