Tesla Inc. shares fell in recent trading as the market reacted to executive instability and mounting pressure on its autonomous driving ambitions. The latest blow came with the departure of Troy Jones, the company’s vice president of sales for North America and a 15-year veteran. His exit marks another significant leadership change, following top Elon Musk aide Omead Afshar last month, and comes amidst what has been described as “sales turmoil” for the electric vehicle giant.
Key Developments
- Regulatory Scrutiny: A nominee to lead the U.S. National Highway Traffic Safety Administration (NHTSA) stated that regulators “cannot sit back and wait for problems to arise” with self-driving cars, signaling a potentially tougher oversight environment.
- Full Self-Driving (FSD) Technology: The company was recently forced in arbitration to pay nearly $18,000 to a customer after its FSD was deemed “nowhere near autonomous.”
- Robotaxi Services: Tesla plans to expand its robotaxi service to the San Francisco Bay Area within “a month or two,” despite ongoing probes into traffic violations by its robotaxis in Austin.
Financial Outlook
Tesla is scheduled to announce its latest quarterly financial results after the market closes on Wednesday, July 23. Wall Street analysts are forecasting EPS of 42.3 cents on total revenue of $22.79 billion.
Stock Analysis
Based on stock rankings, Tesla exhibits the profile of a classic high-growth investment trading at a premium. The company scores exceptionally high for Growth at 90.93, indicating strong forward-looking expansion potential. However, it receives a very low Value score of 10.39, suggesting that its current stock price is considered expensive relative to its fundamental financial metrics.
Price Action
Tesla shares closed recent session lower by 1.93% to $310.78. The stock has a 52-week high of $488.54 and a 52-week low of $182.
How to Participate in the Market
To buy Tesla stock, you can open a brokerage account and purchase shares through a trading platform. Many platforms allow you to buy “fractional shares,” which enables you to own portions of stock without buying an entire share. If you’re looking to bet against the company, you can explore options trading or short selling, but be aware that these methods involve more complexity and risk.
Buying TSLA Stock
- Open a brokerage account
- Choose a trading platform
- Buy fractional shares or whole shares
- Start with a small investment, such as $100, which can buy you 0.32 shares of Tesla stock
Alternatives to Buying Stock
- Options trading: buy a put option or sell a call option
- Short selling: lend shares to sell, but be aware of the risks and complexity involved