On one hand, I have thought for years that Tesla stock was wildly overvalued. On the other hand, you don't get in front of a runaway train so I didn't trade it. Tesla stock was down about 60% from its high in July of last year though today it's up significantly following Elon Musk's announcement that the company is going to focus on creating a more affordable electric vehicle. I don't think the news is as important as the market seems to given that EV prices have already come down so far that it's hard to imagine that the vehicle price is really the thing keeping people from buying, at least in the US. Maybe the investment these is that a much cheaper car will let Tesla gain market share in China, but I'm speculating, if you'll pardon the pun.
Electricity and power industry expert Robert Bryce has a fascinating new article about the troubles at Tesla specifically and EV's generally and wonders whether Tesla could potentially go bankrupt. I think the odds of that are less than 50% but more than 10%. I haven't the slightest guess as to the time frame, though.
I encourage you to subscribe to Robert's Substack...for now, it's still free!
Tesla In Turmoil: The EV Meltdown In 10 Charts (substack.com)
Tesla’s Earnings: Elon Musk’s Future and Other Takeaways (wsj.com)