Rising interest rates have forced many investors to shift their money from risky stocks to safe investments. The global equity markets are down 15-20% in 2022
The stock prices of blue-chip stocks have declined in recent months, and leading EV company Tesla was also hit hard by a 45% drop from its peak in 2022.
There are a number of reasons for the decline in the stock price of Tesla.
Rising Inflation forced Federal Reserve to Increase Interest Rates causing a global sell-off.
Lower production numbers due to Supply Chain Issues.
Closure of Gigafactory Shanghai due to Lockdown in China.
Distracting Musk-Twitter Deal put the extra pressure on Tesla Stock
Many investors see the market sell-off as an opportunity to buy quality stocks. Many analysts are bullish on Tesla with a “moderate-buy” rating. Here are a few factors that you should focus on before buying Tesla.
Tesla recently announced plans for a 3-for-1 stock split, pending a shareholder vote in August.
The company believes it has a "reasonable shot" at increasing vehicle production by another 60% this year, compared to 2021.
The analyst believes TSLA should begin to see some light at the end of the tunnel, as demand issues become resolved in China.
Tesla P/E has come down much faster than its stock price. investors should realize that they are getting in on a very fast-growing company.