Is It Time to Buy Tesla Stock?

Are you considering investing in Tesla, but wondering if it might be a risky move? If so, read on to learn about the various headwinds facing the company before you buy the dip in Tesla's stock. Are you considering investing in Tesla, but wondering if it might be a risky move? If so, read on to learn about the various headwinds facing the company before you buy the dip in Tesla's stock.   [Wealth Daily]      Jason Williams / Jan 09, 2023 Is It Time to Buy Tesla Stock? After falling over 70% from its 2021 highs, Tesla stock is probably looking enticing to some investors. [tesla drop 2022] But after reading about all the headwinds it’s facing, I think you’ll agree with me that Tesla has a better chance of seeing a share price of zero than it does of hitting those 2021 highs again… No Longer the Only Game in Town First, let's examine the issue of competition. Back in 2010, when the company first went public and started its meteoric rise, Tesla was the only game in town. That meant if investors wanted to bet on the future of electric vehicles and buy a company that manufactured them, Tesla stock was their only choice. That was one of the many reasons analysts gave to support the company’s sky-high prices and valuations. However, that’s no longer the case. [tesla competition] Tesla is not the only player in the electric vehicle market. And many of its competitors have been in the automobile industry for a much longer period. This means they have more experience and resources. And that allows them to potentially produce higher-quality products at a lower cost. For example, established automakers like Toyota and GM have been producing electric vehicles for years and have made significant progress in terms of range and charging times. This poses a significant challenge for Tesla, as it must continuously innovate and improve its products just to stay competitive. But that’s not the only challenge the pioneer of EVs is facing… $6 Billion in Funding Going to a Single Company? Biden has been dishing out funding as if these are his last days on Earth. He’s handed out more than $2 trillion in funding during his first few years in office. One of his biggest goals is to develop the future of energy. Shockingly, it has nothing to do with fossil fuels OR renewables. A full $6 billion is headed to an industry dominated by one tiny Virginia-based company. A few critical patent approvals means very few others are on the shortlist. And early investors in this game-changing technology could reap a massive windfall. [You need to immediately check this one out for yourself.]( Tesla Has a “Demand Problem” Another headwind for Tesla is the potential for slowing demand for electric vehicles in general and Tesla’s EVs in particular. While there has been a push toward sustainability in recent years, electric vehicles still make up a small portion of the overall automotive market. It is possible that this demand could decrease in the future due to a variety of factors, such as the availability of traditional fuel vehicles or a decrease in the price of oil. In fact, there are already signs that the market for electric vehicles may be reaching a saturation point, with sales growth slowing in key markets like China and Europe. [slowing ev sales] Slowing sales mean slowing earnings. And Tesla needs to keep those earnings growing to support its stock price. If sales drop off, earnings will follow suit. And share prices follow earnings, so that will lead to more declines in the stock. Unexpected Stock Could Rocket 30x Because of the Chip Shortage Because of the unprecedented demand for tech devices around the world driven by the explosive growth of Bitcoin and crypto mining... the rapid adoption of electric vehicles... the rollout of 5G wireless networks... and countless other emerging technologies... Most chipmakers simply can’t keep up. One CEO admitted “we’ll be chasing supply for the next 10 years.” However, one American chip stock is perfectly positioned to dominate in this environment while its peers struggle. Over the next 90 days, shares could blast 30x higher. [Now is the time to get in on the action.]( Better EVs With Better Technology In addition to competition and slowing demand, Tesla must also contend with competitors offering superior products. For example, several other companies have been able to produce electric vehicles with longer ranges and faster charging times, which could make them more appealing to consumers. This is particularly concerning for Tesla given that range anxiety and charging infrastructure have been long-standing issues holding back mass adoption of electric vehicles. There’s also the concern over Tesla’s self-driving technology. After years of research and development and trial and error, it still fails to recognize “human-shaped” obstacles. [Tesla hitting kid] Several companies have made much more progress toward releasing full self-driving vehicles that are safer and more efficient than anything Tesla has developed. Multiple Compression Meets Earnings Compression Another factor for investors to consider is Tesla's unreasonable valuation. The company's stock price has been highly volatile in the past, and some analysts believe it is still overvalued — even after dropping over 70% from its peak. This means that the price of the stock does not accurately reflect the value of the company and its assets. In fact, Tesla's valuation is significantly higher than that of other automakers, even though it has yet to consistently turn a profit. This should be a HUGE red flag for investors and suggests that the stock may be overhyped. Tesla’s multiples are already compressing as the share price falls. That will accelerate as earnings estimates are adjusted for slowing demand. And that will lead to an even greater drop in share price as investors flee the company en masse. Endless Energy Perfected at Last What you’re looking at is NOT oil, ethanol, or some crazy biofuel. But in the near future, every skyscraper, factory, truck, plane, train, bus, and boat could be powered by it. It’s so cheap and efficient it could wipe out every other conventional fuel source we use today... And hand early investors a shot at world-altering gains. [See the breakthrough for yourself here.]( Everything Costs More Finally, there is the issue of Tesla's growing costs. The company has been investing heavily in research and development and expansion efforts, which has led to increased expenses. Tesla has been working on developing new technologies like self-driving cars and battery recycling, as well as building new factories and showrooms. [TSLA_expenses] While these investments may pay off in the long run, they could also put pressure on the company's profitability in the short term. And if the company doesn’t last long enough to see the “long run,” then those are just financial outlays that will never be recouped. The (Rock) Bottom Line Tesla faces numerous headwinds, including competition, slowing demand, superior products from competitors, an unreasonable valuation, and growing costs. These factors suggest that it may be a good idea for investors to consider selling their Tesla stock before things get even worse. Combine them with the risk inherent in investing in a volatile stock and the impending recession about to grip the global economy... And they suggest investors should sell their Tesla stock now, before it crashes to zero and really hits rock bottom. To your wealth, [jason-williams-signature-transparent] Jason Williams [[follow basic] @TheReal_JayDubs]( [[follow basic]Angel Research on Youtube]( After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of [Main Street Ventures](, a pre-IPO investment newsletter; the founder of [Future Giants](, a nano cap investing service; the editor of [Alpha Profit Machine](, an algorithmic trading service designed specifically for retail investors; and authors [The Wealth Advisory]( income stock newsletter. He is also the managing editor of [Wealth Daily](. To learn more about Jason, [click here](. [Feedback? get in touch](mailto:/newsletter@wealthdaily.com?subject=Wealth%20Daily%20feedback) [Read this email online]( [Manage Newsletters]( [Share on Twitter]( You signed up for our newsletter with the email {EMAIL}. You can manage your subscription and get our privacy policy [here](. This email is from Angel Publishing, 3 East Read Street, Baltimore, MD 21202 © Wealth Daily.  Â