Forget Waiting for a Dip: Tesla's Best Entry Point Is Now, and Here's How to Buy
Growth in its energy business is accelerating, and the Cybercab EV and Optimus robot are nearing key milestones.
Overview
I keep hearing people say they want to own Tesla (NASDAQ: TSLA) stock but are waiting for a better price, and I understand the instinct, because the stock has swung between $297.38 to $498.83 over the past year. The problem is that Tesla is already 30% off its high while deliveries grew 25% and energy storage jumped 40%, so the discount everyone is waiting for may already be here.
Tesla is down roughly 17% over the past four weeks, and I think that pullback is the entry point rather than a reason to wait for a deeper one.
Details
Tesla trades today roughly 25% below its 52-week high, and about 23% above its 52-week low. Over the past 12 months, the stock has risen by 9.5%, meaning a year of operational progress has produced half the average price appreciation of the S&P 500, which is up by about 19%. Tesla's forward price-to-earnings ratio sits near 207, with a trailing multiple of about 340, so nobody is buying the stock based on its current earnings math. If you're buying it at all, you're doing so based on your view of what the company is building.
Image source: Getty Images.
Source
Originally published at www.fool.com.