The Hits Keep Coming for "Bearish" TSLA Stock

Here's how it rates now… Published By Money & Markets, LLC. June 12, 2024 Published By Money & Markets, LLC. June 12, 2024 [Turn Your Images On] [Turn Your Images On] From The Desk of [Matt Clark, CMSA®]( Chief Research Analyst, [Money & Markets Daily]( The Hits Keep Coming for "Bearish" TSLA Stock Money & Markets Daily, A year ago, my wife and I made two crucial decisions: - Reduce the number of cars in our household from two to one. - Buy a new car that will last. The first decision was easy … we sold the two vehicles we had. The second … not so much. Living in South Florida, there are tons of electric vehicles (EVs) and hybrids on the road, so we contemplated getting one ourselves. However, the cost and the lack of charging stations quickly made this option a no-go. Instead, we went with a model we had previously purchased — a Dodge Charger. It was nice to return to something familiar. We weren’t alone in the car-buying process, as U.S. auto sales picked up last year. In looking at auto sales data, I spotted a trend that is not-so-great news for a popular automaker. Today, I’ll show you that trend and dive deeper into what it means for that manufacturer’s stock. Auto Sales Are Up, EV Market Share Is Down The first quarter of 2024 saw a boom in auto sales despite higher interest rates on auto loans. [Turn Your Images On] [(Click here to view larger image.)]( For the first three months of the year, new vehicle sales in the U.S. jumped 5.1%. While that sounds like great news for most automakers, the data reveals a less rosy story for one segment. The market share of EV sales dropped in the first quarter. According to Kelley Blue Book and Cox Automotive, EV share of total new-vehicle sales was 7.3% in the first three months — a drop from 8.3% in the previous quarter. Total EV sales were up 2.6% on a year-over-year basis but fell 15% quarter over quarter. What’s even more telling is the world’s largest EV maker, Tesla Inc. (Nasdaq: TSLA), has seen its U.S. EV market share drop from 75% in 2022 to just 52% as of the end of March. With Tesla in the news this week, it’s a good time to see how TSLA stock has fared over the years in Adam O’Dell's Green Zone Power Ratings system … and what it tells us now. --------------------------------------------------------------- [Turn Your Images On]( [NVIDIA, AMD, and the Race for AI…]( NVIDIA is putting its AI tech into everything these days, including video games, movies, robots and even self-driving cars, and AMD has seen an astounding 9,162% gain in a little less than 10 years. Many experts believe we’re just entering the start of the AI boom. AI has been called the biggest new industry of the 21st century. Worth a staggering $80 trillion over the next ten years, and Chief Investment Strategist Adam O’Dell saw it coming a long time ago. Recently, Adam uncovered new research that shows a number of promising, high-quality AI stocks that could go on to SURGE in the coming years. [See the details now.]( --------------------------------------------------------------- TSLA Stock’s Ratings Journey Tesla is in the news this week as shareholders prepare to vote on CEO Elon Musk’s $56 billion pay package on Thursday. The Delaware Chancery Court previously ruled the pay deal “unconstitutional,” but shareholders hope to correct flaws in the arrangement made six years ago … when the deal was originally approved. Another reason for the vote is to get Musk's focus back on Tesla and not on any of the five other companies he either owns or has a huge stake in. If you follow Green Zone Power Ratings, you've had a heads-up on Tesla's stock prospects for a while now… TSLA “Bearish” in Green Zone Power Ratings [Turn Your Images On] [(Click here to view larger image.)]( TSLA moved from “Neutral” to “Bearish” on October 24, 2022 … and has remained there ever since. A “Bearish” or “High-Risk” outlook on a stock means we expect that stock to underperform the broader market over the next 12 months. And TSLA certainly lived up to that… [Turn Your Images On] Despite some massive price swings higher at times, TSLA stock (the green line in the chart above) has dropped more than 17% in value since hitting that “Bearish” mark in October 2022. The S&P 500 (the red line), on the other hand, has surged up more than 42% over the same time. If you owned TSLA stock and sold it when our system flashed a “Bearish” signal, you would have saved not only money but also a lot of headaches. Bottom line: Tesla remains the largest seller of EVs in the world, but the market has hit a rough patch. Dwindling demand is hurting Tesla's bottom line. In addition, companies like Ford, Hyundai, Mercedes, General Motors, Volkswagen and others are chipping away at that market share. Smaller companies like Rivian and Lucid are also cutting into Tesla’s sales. While you might want to buy a Tesla for the road, our Green Zone Power Ratings system says this stock is hands-off for your portfolio. Go ahead and try looking up a few other stocks yourself. Just [go here]( type in a company name or ticker and get that stock's rating breakdown in a snap! Until next time… Safe trading, [Matt Clark, CMSA®]( Chief Research Analyst, [Money & Markets Daily]( --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [HOW SMART INVESTORS WILL PROFIT FROM HERE]( - [5 THINGS YOU NEED TO KNOW THIS WEEK]( - [RETAIL STOCKS … IN THIS ECONOMY?!]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. 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To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. 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