12/24/2023 0 Comments Should i sell rocket stockWall Street tumbled lower in premarket trading Monday as crude oil prices surged after the Israeli government declared war following deadly attacks by Hamas from the Gaza Strip.įutures for the S&P 500 skidded 0.6% before the bell, while futures for the Dow Jones industrials fell 0.5%. 5 Things to Know newsletter: Sign up to start your day with the biggest stories.Stocks of oil and defence companies rose. The area under conflict is not home to major oil production, but fears that the fighting could spill into the politics around the crude market sent a barrel of U.S. The Dow fell 4 points and the Nasdaq composite was off 1%. The S&P 500 was 0.4% lower ealy Monday in its first trading since Hamas launched a surprise attack over the weekend against Israel, which then formally declared war. On the date of publication, Chris MacDonald 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 Publishing Guidelines.Oil prices are climbing, and stocks are slipping as violence in the Middle East injects more unease into financial markets worldwide. Despite skeptics, Tesla has a history of defying expectations, likely leading to ongoing stock volatility. With a price-earnings ratio of roughly 75-times, the company faces challenges in convincing a broader audience to adopt electric vehicles. Indeed, the company’s upcoming earnings report will help to clarify the situation.Įlectric vehicle growth has slowed, and Tesla’s high valuation demands innovation to maintain its price. And pessimists are pointing to Tesla’s high valuation and rising competition as reasons to avoid the stock. Optimists are anticipating profitable growth. Tesla’s Q3 delivery performance could indicate factory issues or demand concerns. Additionally, a slight drop in long-term Treasury bond yields has relieved pressure on growth stocks like Tesla. Second, despite concerns about rising interest rates, recent data shows continued demand for car sales, benefiting companies like Tesla. First, its rival Rivian impressed investors with strong Q3 production figures. Tesla’s stock rally may be due to two reasons. Worker strikes affecting the “Big 3” automakers could limit their supply, potentially benefiting competitors like Tesla. This indicates ongoing demand despite economic concerns and rising interest rates. auto sales were up 17% year over year ( YOY). Rivian, Tesla’s competitor, saw a significant surge in its stock today due to better-than-expected Q3 production figures. Despite an initial dip in share price and increased short interest, the stock remained relatively stable after the report, likely due to two factors. TSLA attributed this drop to “planned factory upgrades,” maintaining its full-year delivery estimate. On October 2, Tesla reported Q3 deliveries of just over 435,000 vehicles, missing Wall Street estimates by over 20,000 and down about 6% from Q2. Deliveries Numbers Don’t Inspire Confidence Lowered price targets before earnings indicate skepticism. Despite adjusted forecasts, recent delivery shortfalls raise concerns. Moreover, Sacconaghi suggests Tesla must excel in Q4 and possibly lower prices to meet 2023 delivery targets, impacting 2024. These combined reasons could potentially require price cuts next year. Specifically, he cited concerns about Tesla’s auto gross margins, lower volumes, discounts, weak demand, and a lack of new offerings. Toni Sacconaghi of Bernstein remains bearish with a “sell” rating and a $150 target. William Stein of Truist Financial suggests a “hold” with a $243 target. Goldman Sachs’ Mark Delaney lowered the target to $252, rating it a “hold”. JPMorgan’s Ryan Brickman maintains a “sell” rating with a $135 target, implying a 45% downside. TSLA stock is dropping, and Wall Street analysts are growing more pessimistic. The following expectations for October 18, as well as other updates, will give you needed insight about Tesla. Given recent disappointing deliveries numbers, a negative earnings report appears to be widely expected. Currently, it’s down nearly 2% at the time of writing on a volatile day of trading, indicating investors remain cautious on this name heading into its earnings print. Tesla (NASDAQ: TSLA) faces a challenging Q3 earnings report, as the stock’s recent volatility and downward trend have raised concerns among investors.ĭespite some recent improvement, TSLA stock is facing challenges today, likely due to the Q3 deliveries report.
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