Gary Black, a renowned investor, anticipates that Tesla Inc. stock will continue to rise through the third quarter before experiencing a decline in the fourth quarter. Black shared his thoughts on the social media platform X, highlighting Tesla’s stock performance and his reluctance to buy the stock amid the current rally.
Tesla Stock Likely to Increase
Black stated that he expects Tesla’s stock to rise between now and September 30, as traders discount a potential third-quarter delivery beat. He predicts that Tesla’s deliveries will reach 470,000, exceeding the estimated 433,000. However, Black also mentioned that he would not buy the stock again until it offers a 2:1 risk-adjusted upside/downside.
Predicted Decline in Q4
The investor expects Tesla’s stock to fall in the fourth quarter, citing that the new, more affordable model may not meet expectations. He predicts a 10%-12% decline in deliveries during Q4.
Recent Developments at Tesla
Meanwhile, Elon Musk, Tesla’s CEO, has reaffirmed his commitment to the company, sharing insights into his schedule and focus on Tesla’s Optimus line of robots and vehicle production. However, the company has experienced a talent exodus, with key individuals departing, including Ashish Kumar, the Optimus team lead for AI.
Redesign of Electronic Door Handles
Tesla has announced that it will redesign its electronically-operated door handles, which are currently under investigation by the NHTSA due to safety risks. The company is taking proactive measures to address concerns and ensure the safety of its vehicles.
Market Analysis
Tesla scores well on Momentum and Growth metrics, offering satisfactory Quality, but poor Value. Investors can gain more insights into the company’s performance by analyzing its stock rankings and market trends.
Conclusion
As the automotive industry continues to evolve, Tesla remains a key player, with its stock expected to experience fluctuations in the coming quarters. Investors should stay informed about the company’s developments and market trends to make informed decisions.