Based on the recent market data and analysis, here's a direct assessment of Tesla stock:
Technical Analysis
Tesla's stock is showing bearish signals with RSI at 36.90 indicating oversold conditions but not yet at extreme levels. The stock is trading below its 5-day (352.54), 10-day (349.60), and 20-day (371.01) moving averages, suggesting strong downward momentum.
Recent Performance
Tesla stock has declined significantly, with the latest close at $191.97, representing a substantial drop from recent highs. The stock is down 13% in 2025, with several concerning factors affecting its performance.
Key Challenges
- First-ever annual decline in vehicle deliveries in 2024
- Declining automotive revenue (-8% year-over-year)
- Margin pressure with gross margins falling to 17.9%
- Intensifying competition in the global EV market
- Pricing pressure affecting average selling prices
Positive Catalysts
- Potential launch of unsupervised FSD in California this year
- Plans for autonomous ride-sharing service in multiple cities by end of 2025
- New cheaper car model expected to start production this year
Recommendation
Based on current technical indicators and fundamental challenges, SELL Tesla stock at current levels. The stock appears overvalued at 176.7x earnings, and multiple headwinds suggest further downside potential before finding strong support.