Tesla Stock Rebounds Pre-Market After Worst Day In Over 2 Months: Retail Bearishness Eases Slightly
By Stocktwits Inc | First Published Dec 19, 2024, 7:21 PM ISTDonald Trump's presidential win "not as positive as you'd think" for Tesla's fundamentals, Barclays contended.
Shares of Tesla, Inc. climbed more than 3% premarket on Thursday, rebounding from the previous session’s sharp decline amid broader market volatility following the Federal Reserve’s signal of a slower pace of easing next year.
The stock lost more than 8% on Wednesday, marking its worst intraday fall since Oct. 11.
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Retail activity remained strong on Stocktwits before the bell on Thursday, where Tesla ranked among the top 15 trending symbols.
Sentiment on the platform improved slightly, shifting to less bearish levels than a day ago.
However, skepticism persists among market watchers. Data from the European Automobile Manufacturers’ Association (ACEA) revealed 18,786 new Tesla registrations in the European Union in November, a 41% drop compared to the same period last year.
Retail investors on Stocktwits shared mixed views, with some questioning the sustainability of Tesla’s valuation.
Some Wall Street analysts echoed these concerns too.
Barclays highlighted a “sharp disconnect” between Tesla’s fundamentals and its stock performance, attributing the rally to the “outsized role” of technical and options trading rather than meaningful business improvements, according to The Fly.
Donald Trump's presidential win is "not as positive as you'd think" for Tesla's fundamentals, Barclays contended.
The brokerage compared Tesla’s valuation to cryptocurrency and maintained an ‘Equal Weight’ rating with a $270 price target, calling the current multiple of 145-times 2025 earnings “frothy.”
In contrast, Baird’s Ben Kallo reportedly reiterated a bullish stance, citing factors like new vehicle introductions, increased factory efficiency, falling production costs, and Tesla’s investments in artificial intelligence and autonomy as tailwinds for 2025.
Kallo added that Tesla may benefit relatively from the potential removal of EV tax credits under the Trump administration, as competitors could be hurt more.
He also flagged potential risks, including geopolitical tensions with China, delayed timelines for long-term projects like robotaxis, and margin pressures tied to lower-priced vehicles.
Tesla’s stock, which is up 76% year-to-date, continues to generate debate, balancing strong investor enthusiasm with persistent concerns over fundamentals and market valuation.
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