There is never a dull moment with billionaire and Tesla (TSLA) Chief Executive Elon Musk. His antics often raise the question: Is it time to buy or sell TSLA stock?
XOn one day, Musk is sending astronauts to the International Space Station on one of his SpaceX rockets. On another, he's making headlines for thrashing Twitter or casting insulting tweets. He'll also stretch the limits on following federal guidelines.
But throngs of investors care mostly about whether they continue to make loads of money off Tesla stock. And Tesla stock has been slipping again after a massive run that began the year.
Tesla A Monster Stock Over Much Of Its History
Almost single-handedly, Musk has turned the auto industry on its head, essentially forcing it to get aboard the electric-vehicle train.
It's a reason why Tesla has been a monster stock over much of its history, especially during its stratospheric run from mid-2019 to late 2021. The stock hit a bear market low of 101.84 on Jan 6. TSLA stock roared back but is sliding once again.
The company reported mixed fourth-quarter results on Jan. 25, topping earnings estimates but missing on revenue. Still, the stock held up as Musk said he was bullish about 2023 and said the company might be able to produce 2 million cars this year.
While sales and profits continue to grow at a blistering pace, they are decelerating. Full-year 2022 earnings surged 80% to $4.07 per share. But that's down from 202% growth in 2021. Analysts think earnings this year will be flat at $4.05 a share.
Sales in 2022 jumped 51% to $81.5 billion. That's down from a 71% gain in 2021. Analysts expect sales growth this year of 27%.
It's a reason why Tesla has been a monster stock over much of its history, especially during its stratospheric run from mid-2019 to late 2021. The stock hit a bear market low of 101.84 on Jan 6. TSLA stock roared back but is sliding once again.
Deliveries Completed Earnings Coming Up
Tesla reported first-quarter deliveries that hit a record, but the company fell short of estimates once again. Analysts expect Tesla will continue to face pricing pressure in the second quarter.
Tesla has missed delivery estimates for several quarters. Deliveries jumped 36% in the fourth quarter from the year-ago period to 422,875. That was 4% above the prior record of 405,278 set in the fourth quarter. However, analysts were expecting about 431,000 Tesla deliveries.
On Jan. 3, the day after it missed fourth-quarter delivery estimates, Tesla shares sank more than 12%. That day remains the worst for Tesla stock in 2023. Tesla stock bottomed on Jan. 6, as the company announced big price cuts in China and Asia.
Tesla Continues Global Price Cuts
On April 14, Tesla reduced prices in several European markets. Tesla also dropped the price of its electric vehicles in Israel and Singapore in order to increase demand, expanding a worldwide discount push that began in China in January.
The global EV maker also significantly reduced prices in the U.S. and Europe on Jan. 13, then reduced European prices again in early March.
In Germany, Tesla lowered the price of its Model 3 and Model Y vehicles by between 4.5% and 9.8%, while it cut prices of the Model 3 and Model Y vehicles in Singapore between 4.3% and 5%.
Tesla held its Analyst Day event on March 1. The company reaffirmed its long-term goal to sell 20 million vehicles annually. Electric-car demand is anticipated to remain high for many years. That's due to government policies and growing interest in this category, which bodes well for Tesla's future growth prospects.
Tesla reports first-quarter financials April 19, with gross margins expected to be in focus. Analysts predict earnings falling 19% to 86 cents a share with revenue growing 27% to $23.78 billion.
The Long-Awaited Semi Hauler Unveiled
In early December, Tesla unveiled its long awaited Semi, an 18-wheel, long-haul electric freight truck, five years after it was first announced. However, Tesla ordered a voluntary recall of 35 of its all-electric Class 8 Semi trucks due to a parking brake issue.
Tesla also began delivering its long-haul Semi trucks to PepsiCo (PEP) in December. Further, Musk has indicated there are plans to build out a charging network for long-haul trucks.
Musk did not specify how much the 18-wheeler costs. The Semi is capable of traveling an estimated 500 miles per charge. It can accelerate from zero to 60 in 20 seconds, Tesla says. The company expects to ramp production over the next year and aims to deliver 50,000 units in 2024.
It's the first recall for the Semi, which is produced at the company's factory in Sparks, Nev.
Meanwhile, the Tesla Cybertruck is set to arrive in 2023. That would be Tesla's first new model since the Model Y launched in early 2020.
Is Tesla Stock A Buy?
On March 31, Tesla stock jumped 6.2% to 207.46, clearing a 200.76 cup-with-handle buy point, according to MarketSmith analysis. However, shares are close to their 200-day moving average, a possible resistance area, MarketSmith says.
TSLA stock is holding above its 50-day moving average. If it can break through its 200-day line, that would provide a buy point of 217.75.
According to the IBD Stock Checkup tool, Tesla has a Composite Rating of 84 out of 99. When choosing growth stocks with the biggest potential gains, based on the technical and fundamental investing criteria, focus on those with a Composite Rating of 90 or higher. Tesla's Relative Strength Rating is weaker, at 69.
TSLA stock ranks third in IBD's auto manufacturers industry group. Stellantis (STLA) is in first place, followed by Ferrari (RACE).
Tesla's EPS Rating is a best-possible 99.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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