It was a good idea to avoid Tesla (TSLA) after all.
As we noted on Oct. 18, “Down about $7 in after-hours, it’s likely to sink even more tomorrow. All after missing on earnings. EPS of 66 cents missed expectations of 73 cents. Revenue of $23.35 billion was also below estimates of $24.1 billion. This is also the first time TSLA missed on earnings and revenue since 2019, according to CNBC. In short, it may be a good idea to avoid TSLA until it can get its act together.”
Since then, TSLA slipped from about $242 to $196.72 – and could drop even more. In fact, if you pull up a two-year chart of TSLA, you can see there’s no real support until it gets near $175. All thanks to a global slowdown in electric vehicle demand.
Even Panasonic just said it cut battery production with the EV slowdown. It also lowered its annual profit guidance by about 15%.
Until the EV market sees renewed strength, avoid Tesla.