The View After Tesla’s Shareholder Meeting
Tesla’s shareholder meeting on Tuesday gave analysts more reasons to remain bullish on the stock.
But other analysts aren’t convinced.
Tesla’s stock is guided as much by emotion as actual performance.
One thing is clear, though — May represented a remarkable period of growth for the company.
Tesla’s June Stock Surge
Last month, Tesla sold a record 11,300 Model 3 vehicles in the U.S. That’s a 73% jump in electric vehicle (EV) sales compared to the same time last year.
Its combined total EV sales for the month equaled 2.6 times that of its nearest competitors over the same period.
Tesla CEO Elon Musk maintains a positive view for the year.
Musk told shareholders that Tesla plans to roll out its first car with a 400-mile range “soon.” Its newest fleet of economy and luxury cars will also see a larger global sales push as well.
This is the good news investors wanted to hear.
The stock jumped 4% in premarket trading on Tuesday. Then it opened at $217.10 the next morning.
It bounced back from a low of $179 last week. And many analysts raised their price targets after the meeting.
It doesn’t matter if you’re a bull or bear on the stock. Tesla’s positive results carry huge implications for the EV space.
The company still has a lead on close competitors, such as BMW and Toyota, with its autonomous driving technology. Sales of the Model 3 are also outpacing similar offerings from these automakers.
It seems clear that Tesla will maintain its lead in the EV space.
And that means bullish traders will keep buying the stock. They see its potential to reach new highs in 2019.
The Bearish View on This EV Leader
But not everyone on Wall Street is convinced.
Drops in Tesla’s share price have dented the stock’s overall value this year. It hit a bottom of $190 back in May.
Negative news threatened to send the stock even lower.
Factors from SEC investigations over alleged price manipulation to lower luxury-vehicle sales contributed to a weak first quarter.
And there are more historical factors at work here.
The company has underperformed on earnings in past quarters. Recent layoffs suggest more aggressive cost-cutting measures in Tesla’s future.
And its declining sales in Europe and China are keeping some weary investors out of the stock.
Many see slower growth in Tesla’s future. Morgan Stanley analyst Adam Jonas believes as much.
He warned clients in a private call about this prospect: “Tesla is not really seen as a growth story … [it’s] a distressed credit and restructuring story.”
He told them not to expect a bailout from Apple or Amazon.
No investor wants to see Tesla’s mounting debt exceed growth expectations.
Even bearish speculators see value in the company’s individual assets, though. Analysts suggest that key items such as its self-driving technology unit are still undervalued.
We can expect a clearer picture of Tesla’s fortunes once it announces second-quarter earnings. Come August, analysts will have more data to work with.
Now, we realize it can be hard to know where to stand on this stock. Every news story seems to expose deeper divisions among analysts.
Some of our own experts disagree on Tesla’s future.
Banyan Hill’s options expert, Chad Shoop, has maintained a bullish stance on Tesla through the years.
He shared his own positive forecast on Tesla’s stock in a video earlier this year. He even predicted the stock would bounce back after similarly bearish predictions in February.
And Chad’s positive sentiment has yielded solid gains for his readers.
He recommended bullish options on the stock in Pure Income and Quick Hit Profits in 2018. His readers collected short-term gains totaling 18%, 42%, 51% … and higher!
Chad avoided the negative noise around the stock. And his subscribers have been able to collect profits from its drift pattern over the past two years.
He plans to recommend more profitable trades in the EV space throughout 2019. You can learn more about his quick-hit options strategy right here.
Our experts have more to tell you this week!
Our Experts’ Latest YouTube Videos!
Chad explained his strategy for adding covered calls to bullish options trades. In his own trading systems, Chad has used this strategy to collect even more income on surging stocks.
Just click the image below to learn more.
Anthony Planas posted a new POTcast episode on Thursday. In this week’s Marijuana Markets update, he discussed the hemp industry’s expansion, Colorado dispensaries’ fast growth, Texas’ new hemp bill and more.
And John Ross advised readers on how to play gold’s coming rally. With gold prices trending higher in June, you have many options for investing your capital in this booming sector.
Just click the image below if you’re interested in seeing more.
We’d love to hear from you! Are you a bull or a bear on Tesla?
Just write to us at email@example.com to be part of the conversation.
Our experts keep a close eye on the markets. They want to make sure they can offer the best trading advice.
Read on to see the topics they’re following this week.
The Winning Investor Daily Team
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