Is this TSLA max pain?
Tesla stock ($TSLA) has been beaten down since early 2022. It’s had brief pops here and there but has failed to reclaim north of $300. Lately the stock has been trading below $200, well shy of the other ‘magnificent 7’ companies. This begs the question: is this TSLA max pain?
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What is TSLA max pain?
It’s hard to argue that anything post 2020 for $TSLA stock would be considered max pain. However, if you’ve been a bag holder, I mean shareholder in Elon Musk’s company over the past few years, you probably feel otherwise.
$TSLA is down roughly 25 percent since Jan. 1 of 2024 — severely lagging behind other giants like Nvidia, Meta, SMCI and nearly every other publicly traded company (at least that’s what it feels like).
So, how low can $TSLA go? Luckily this is not the limbo. Otherwise Tesla would have to file for Chapter 11 bankruptcy.
We’ll spare you of technical analysis in this post (but if you’re interested — catch our Tesla 2025 stock forecast here). Instead let’s look at the remaining bullish catalysts Musk’s company has left.
Cathie Wood keeps buying $TSLA
Now, it depends who you ask. Some may consider Cathie Wood’s ARK invest to be a ‘wealth destroyer’, but if you ask us, she’s just early.
She’s been early to DraftKings ($DKNG), Palantir ($PLTR) and even Coinbase ($COIN). Here foresight has been both a blessing and a curse with many of those companies losing significant value in the market crash of 2022.
However, if one has patience and a stomach of steel, you’d likely be breaking even on those investments now, if not in the green.
And now it seems like each time $TSLA takes a dip, Cathie Wood buys more.
Her company sends a daily email noting which stocks the fund bought and sold on any given day.
Typically when Tesla dips, the daily email will have a green buy icon next to the ticker $TSLA.
She now owns at least 3.386 million shares in the EV giant, with no sign of selling soon. To see a fund manager so bullish on the company, can put some of our fears at ease.
ARK’s simulation models also portray a bright future for the stock, and we highly recommend reading their investment thesis on $TSLA.
Gary Black’s TSLA price target
In another bullish spin, fund manager and Tesla bull, Gary Black offers some of the most pointed TSLA stock advice.
He updates readers on X almost daily sharing his insights on the stock.
In his most recent TSLA price target post, he noted a $290 PT in the next 6-12 months.
The only bone I have to pick with Gary’s assessment of whether this is TSLA max pain, is his listed Cybertruck halo effect.
It doesn’t appear that the Cybertruck will be a mass adopted vehicle — at least not on its first edition.
It could be similar to Apple Vision Pro — which looks super cool — but is ultimately unnecessary for day-to-day life.
All we’re saying is don’t expect mass adoption for either the Cybertruck or Apple Vision Pro upon first edition.
Number 5 on Gary’s listed catalysts is much more intriguing.
A Delaware ‘judge’ recently shot down Elon Musk’s $55.8 Billion pay package.
Cathie Wood slammed the decision as ‘un-american’, which is hard to argue. Musk led the company and hit every metric he had to in order to trigger the package.
Now, Musk is threatening to move the company’s incorporation out of Delaware and into the free state of Texas.
This could cause a new pay package that could trigger for Musk upon the potential move. Let’s say he sees a nice windfall from the package — could he buy a significant amount more of $TSLA shares? Or even reinvest into his company?
This could be a major catalyst as Elon seems to waging war against the establishment.
We agree with Gary’s PT for TSLA, indicating that this is not ‘TSLA max pain’, though it feels that way.
Summary
Tesla has enough bullish catalysts to recover much of its early 2024 losses. While shorts could look to keep the stock from rising too high, we are betting on Musk winning the end game. There is not a single American citizen creating more value and advocating for free speech than Musk is. By this product, we expect TSLA to have a meteoric rise and be the leader of the ‘magnificent 7’ in years to come.
[…] Tesla stock will trade at $290 by the end of 2024. We’re still ways away from ‘TSLA max pain‘ but there are far too many positive catalysts for the stock to stay […]