Tesla's stock price has rebounded. What about its future trend?

When I wrote an article about Tesla at the end of February, I clearly expressed my view – I still remain optimistic about Tesla.

 

 

In recent trading days, Tesla has rebounded strongly. In just three trading days, its stock price soared by 23%. If calculated from the lowest point, over the past two weeks, the rebound has reached 32%.

 

Tesla's rebound has made many investors feel a strong sense of missing out, and they are also confused. Didn't people say that Tesla was going to collapse?

 

Today, let's talk about Tesla again.

 

Tesla with Valuation Restoration

During this period, the most controversial large global technology company is undoubtedly Tesla.

 

There have been anti-Tesla movements in many places around the world, cars have been set on fire, sales stores have been besieged, sales have declined in many countries globally, and the stock price has plummeted by more than 50% within three months...

 

And it is said that there will be another global anti-Tesla movement on March 29.

 

In fact, for investors who have conducted in-depth research on Tesla, they should understand that all the disputes surrounding Tesla are not caused by Tesla's fundamentals, but rather by Musk's heavy involvement in politics.

 

In previous articles, I mentioned that for a sharp decline caused by factors other than fundamentals, investors need to consider whether it presents a major opportunity. This view is very applicable to Tesla now.

 

When there has been no fundamental change in the company's business, the unexpected decline in the stock price is bound to lead to a valuation restoration.

 

Cathie Wood Boldly Predicts: Tesla's Stock Price Will Soar by 800% in Five Years

 

Cathie Wood, the chief investment officer of Ark Invest and the biggest enthusiastic supporter of Tesla on Wall Street, recently stated that she firmly believes that Tesla's stock price will climb to $2,600 within five years, which means the stock will soar by 833% compared to Monday's closing price.

 

Cathie Wood said that she has not been intimidated by Tesla's recent sell-off. "Our outlook hasn't changed. What's happening now is all very short-term," said Cathie Wood.

 

Cathie Wood believes that the decline of Tesla is mainly due to concerns about the US economy and political factors in the United States. She was referring to Tesla owners uninstalling features from their Tesla cars, as well as people protesting and vandalizing Tesla cars because Musk, together with government efficiency departments, is pursuing his goal of reducing government costs.

 

However, Cathie Wood said that economic problems are not unique to Tesla. She pointed out that the current political environment is not favorable for any automaker. She said that political pressure may also subside, especially regarding the damage to cars and dealerships.

 

Moreover, Cathie Wood is also optimistic about other projects of Tesla.

 

Tesla will launch its robotaxi (autonomous taxi) service in Austin, Texas in June this year. Cathie Wood estimates that within the next five years, the robotaxi service may account for 90% of Tesla's value.

 

Cathie Wood said that her team increased their positions in Tesla during the recent decline in the stock price. As of Tuesday morning, the Ark Innovation ETF holds Tesla shares worth $651 million, accounting for 11% of the entire fund.

 

During an unexpected meeting last Thursday, Musk specifically mentioned Cathie Wood and urged Tesla employees to continue holding the automaker's stock at that time.

 

Musk said, "Some people, such as Cathie Wood of Ark Invest, truly see the future. So what I want to say is, hold onto your Tesla stocks tightly."

 

What about the Future Trend of Tesla?

After the recent sell-off, the market seems to have overlooked Tesla's growth story as a manufacturer of autonomous taxis and humanoid robots – the market now seems to only focus on the electric vehicle and battery sectors.

 

But when the robot taxis are launched and Tesla starts to showcase how the 10,000 Optimus robots in its factory can work wonders for the business, the valuation premium will return, and by then, it will be too late.

 

However, Tesla is one of the most volatile stocks in the market. As is well known, Musk has a high profile in the political arena, which has seriously eroded investors' confidence. Coupled with the weak fundamentals of its cars, it is not surprising that the stock price has fallen by more than 30% this year.

 

However, my view still hasn't changed. Tesla remains the undisputed leader in the electric vehicle field, and its energy business is in a high-growth mode. In addition, the company has also made significant progress in artificial intelligence, autonomous taxis, and humanoid robots, which may enable Tesla to enter the next growth stage.

 

At the current price level, I still think Tesla is attractive.$TSLA