How much lower can the price of Tesla shares fall as your rival nio goes up?

It is the Tesla (Nasdaq: Tsla) Root stock due to the political activity of CEO Elon Musk? Or is it feared that additional sales decrease as the year progresses? Or possibly “LEFT LEFT RADICAL LUNATICSBoicote the company as President Trump suggests?

It seems to me a combination of two of them, since the shares closed to $ 231 on Tuesday (March 11). How many radical Left lunatics can even pay a Tesla?

Tesla has collapsed in more than 50% since the maximum of all time, was established in December in the back of Trump's electoral victory. Even so, even that leaves long -term investors with a 445% gain in the last five years.

Fall sales

The price has recovered around 6.5% since Monday, after Trump promised to buy a new Tesla. But that will not do much to compensate for a global sales fall.

Tesla sold around 7,500 vehicles in Europe in January. That is only about half of the number of sales in January last year. And occurs when EU emission rules harden are helping to boost hybrid and electric vehicles (EV) in general.

Germany, the largest market in the EU, saw 30% of total EV sales in February compared to the same month of the previous year. But Tesla's sales fell more than 70%. Sales are decreasing in China, Australia … worldwide.

He Child Meanwhile, the price of shares has risen 29% in the last month with a 17% increase in a single day on March 11. But it still is left behind Tesla for five years, since it reached its maximum point until 2021.

What should investors do?

I am sure of very few things in the current market. But I am convinced that I see the uncertainty and fear that Benjamin Graham warned in the short term.

Known as 'The father of value investment', Graham said prices return to fundamental long -term performance. And that is where long -term investors should see.

The problem for me is that the forecasts put the price to profits (P/E) of Tesla in 89. And it only falls to 71 by 2026. And that is based on a consensus that will still not reflect the growing bearish perspective among analysts. There must be a possibility that Tesla can fall a little more.

Sometimes it rains gold

Another great investor, Warren Buffett, said: “Every decade more or less, the dark clouds will fill the economic skies and briefly rain. “

Our economic skies are as dark as I think I have seen them for a long time. And I think that the falling of the United States stock market could mean investors with a long enough horizon.

I think it could be a big mistake to discard Tesla. But my thoughts are resorting to other stocks of fallen growth in more attractive assessments. After Nvidia He lost a billion full dollars in market capitalization, his p/e was only 25 years and predicted than falling more.

But mainly I am considering a recharge in Investment Trust of the Scottish Mendiga With all his juicy actions of Nasdaq, 16% less from a maximum of February. I could still fall, mind.