Tesla, Inc. (TSLA) shares experienced a significant drop after the release of the company’s fourth-quarter results, causing concerns among investors. However, the stock made a slight recovery the following day. With Tesla’s stock currently trading in the oversold zone, many are wondering if it is an attractive investment opportunity at its current levels.
On Thursday, Tesla’s shares closed down 12.13% at $182.63, marking the lowest level since May 25, 2022. The stock managed to rebound slightly on Friday, closing at $183.25. The 14-day relative-strength index of the stock indicates that it is currently in an area suggesting oversold levels.
Despite the recent drop in stock price, some analysts and investors remain optimistic about Tesla’s future. Stocktwits shared a chart showing that every time Tesla’s stock has experienced a pullback and hit a long-term upward trending line, it has bounced back with strength. This trend has been observed since the beginning of 2020, indicating a pattern of resilience for the company’s stock.
It is important to note that Tesla currently faces a near-term deceleration without any significant catalysts. However, updates on first-quarter deliveries, the company’s next-gen electric vehicle, the timeline of the Giga Mexico factory, or a potential launch in India could potentially impact the stock in the near future.
Following the release of the fourth-quarter earnings, analysts have adjusted their estimates and price targets for Tesla. Despite the downward adjustments, the average analysts’ price target of $222.36 suggests a potential upside of over 21%.
In conclusion, while Tesla’s stock experienced a significant drop after the release of its fourth-quarter results, there are signs of potential recovery based on historical trends. Investors should closely monitor any updates or catalysts that could impact the stock in the near term. With analysts still projecting upside potential, Tesla remains an intriguing investment option for those willing to take on some risk.
