Below 29%! Is this my opportunity to buy Tesla shares?

Tesla (Nasdaq: Tsla) The stock is a strange case. Just when you think it is very overvalued, it is recovered to reach the new maximums.

Just look at the price of incredibly volatile shares. It has decreased 17% by one month and 29% from a maximum of December, $ 479. However, since Donald Trump's electoral victory, it has still increased by 34%. More than a year, the action is 69% higher, similar to Nvidia!

In the past, all significant falls in the price of Tesla shares have proven to be purchase opportunities. So should this take? Here are my thoughts.

Assembly problems

Tesla has always given investors things to worry about, and today is no different. It faces the growing competition of both cheaper Chinese electric vehicles (EV) and traditional western car manufacturers. Consequently, Tesla's market share is falling both in Europe and China.

Secondly, consumer expense is still weak, and many people avoid large -cost items such as new cars. So, the general growth of the EV market has slowed. In the long term, it seems to be much larger, but for now it has affected a great increase in speed.

Then Elon Musk has entered politics vocally supporting Donald Trump. This has extended to support political parties in Europe, including the AFD of Germany. From a Tesla perspective, I have to imagine that this is alienating many central potential clients. In fact, reports say that the company's market share in Germany has collapsed 23% two years ago to only 4% in January.

In addition, Musk has assumed the task of reducing the expenditure of the United States government. Between this and the race of x and several other companies (including Spacex, the most valuable private firm in the world), it makes me ask me how much of Musk's attention focuses on Tesla.

Most other CEOs would be pressured to leave their role to focus on politics. However, Tesla $ 1trn market capitalization could implio if Visionary Musk left the company. So this is a slightly unique situation.

Finally, the company's growth has stopped. In the fourth quarter, income increased only 2% year after year to $ 25.2 billion, with automotive income that decreases 8%. Operational profits fell 23% to $ 1.6 billion.

Remember, it was not a long time since Musk project an annual supercharged growth of 50% for the next few years. Such growth now appears firmly in the rearview mirror.

Assessment of heaven

According to all conventional metrics, Tesla's actions are currently very overvalued. Sales are traded 12 times and 113 times the earnings forward.

Meanwhile, the Price to Price to Growth (PEG) of Tesla, depending on its five -year forecasting profit growth rate, is 4.7. That is a significant premium for average 1.6 of the other six actions in the group of 'Magnificent Seven'.

My movement

Despite all this, there are things to be excited about in the future. A developing business that intrigues me is the Optimus humanoid robot (also known as Tesla Bot). The company plans that these work in the Tesla factories for the end of this year.

In the fourth -quarter profit call, Musk said: “Optimus has the potential to be north of $ 10 in income. ” That is Billion!

While Tesla believes that she could sell them as soon as next year, she would take it with a pinch of salt. It is possible that this business is not producing any significant income until the 2030s.

As things are, I will not invest in the actions.