Tesla: Make Or Break Moment Fast Approaching (Rating Downgrade)

(10min)

Summary

  • Tesla is facing substantial risks, worsened by increased political uncertainty, while contending with the brand damage inflicted by Elon Musk's earlier DOGE involvement.
  • Tesla's robotaxi pilot has emerged as the key growth narrative. But execution risks and the need for flawless rollout make the risk/reward less attractive now.
  • Tesla's core automotive business faces worsening headwinds in Europe and China, with delivery estimates likely to disappoint again in 2025.
  • Market optimism is likely priced in, with investors looking past the recent fallout with President Trump. But, it's still too soon to think that Trump has forgotten (and forgiven).
  • With TSLA trading at a high multiple relative to its historical averages, I don't think the current opportunity is appealing in maintaining my bullish view.
  • Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More »

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Drama never seems too linger around Tesla CEO Elon Musk (NASDAQ:TSLA), as his relationship with President Trump has quickly devolved into an abrasive brawl that earned the ire of the MAGA

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This article was written by

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JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.

He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks.

He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing.

He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities.

He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out.

The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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