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Tesla inventories (NASDAQ: TSLA) have increased another 21% in the last five days. The main catalyst for this accumulation is a recently announced inventory division scheduled for August 31. The share division, of course, does not create a genuine price for a company. But when it comes to TSLA inventory, the truth hasn’t mattered for a long time. What topics are Tesla’s story to its investors and the stories they tell themselves.
Wall Street analysts, however, will have to get rid of the facts and figures and admit that TSLA’s inventory is rather appreciated by hopes and dreams. Wedbush and Bank of America are the newest to raise Tesla’s value targets, which have become the most damaging inventory on the market.
“China’s expansion is worth at least $400 consistent with a steady percentage in a bullish deal for Tesla, as this penetration of electric cars is expected to increase particularly over the next 12 to 18 months, as well as the primary battery inventions of Giga 3 (million, the kilometer battery remains a difficult target to achieve now in our opinion) ” Ives said.
In my opinion, this research comes down to 3 key words: “believe”, “China” and “history”. Ives believes in China’s history for Tesla.
Ives also says that Tesla will soon be a third-party main battery for other automakers.
“Looking ahead, we believe that Musk and Co. he is about to announce a number of possible new advances in the ‘game-changing’ battery on his highly anticipated Battery Day on September 22,” Ives said.
The warning of Ives’ research is its inventory market rating, which is “neutral”. I’ve been away from Tesla for years. The TSLA action is a fairytale action that takes place in the middle of an electric vehicle bubble. Anyone who’s long or running inventory at those costs is crazy, in my opinion. That’s why I think “dangerous” is the word used to describe inventory.
Wall Street analysts like Ives in history, however, do not present the action. Bank of America analyst John Murphy recently updated Tesla. He stepped forward, guessed it, “neutral.”
Murphy was a longtime Tesla bear and a story skeptic. But even Tesla bears are forced to admit that the story itself comes at a price if other people have it.
In other words, Murphy doesn’t appear in Tesla’s story. But he says the fact that so many investors create a self-fulfilling prophecy. So at the end of the day, he also came to a “neutral.”
I think it’s incredibly revealing that you have a long-term Tesla bull like Ives and a long-term Tesla bear like Murphy, either coming to the same conclusion as me years ago. Tesla’s inventory is simply untouchable.
The TSLA stock is too much to buy or short.
In fact, David Trainer, CEO of investment company New Constructs, says Tesla is “the 2020 maximum harmful stock.”
“We haven’t discovered a Sales Estimate from Tesla that’s much lower than expected electric vehicle sales through established operators of about 3.1 million electric cars in 2025,” Trainer said.
He predicts that Tesla inventories will decline by more than 80% once the market realizes TSLA’s inventory history and that valuation is absurd.
Simply put, Tesla is at the epicenter of an electric vehicle inventory market bubble. There’s no way of knowing how inflated this bubble will become or when it will burst. Wall Street bullish and bearish analysts throw in the towel and head to the “neutral” margin. That’s the only right conclusion. Stay away from TSLA inventory.
Wayne Duggan has been a contributor to U.S. News and World Report Investing since 2016 and is an editor at Benzinga, where he has written more than 7,000 articles. Mr. Duggan is the Beating Wall Street With Common Sense, which focuses on the psychology of investment and practical methods for overcoming the stock market. At the time of writing, Wayne Duggan had long been general manager.
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