Tesla Stock: The Big Question Is Buy or Bye

Tesla Inc. TSLA stock has been moving in a bumpy way ever since Elon Musk started publicly supporting Trump, promoting DOGE, and making political comments worldwide. Last month, Tesla stock declined only 3% despite weak earnings and challenging quarters ahead. In previous months, the stock experienced double-digit monthly drops with high volatility.

A Bumpy Ride or a Golden Opportunity?

Fundamentals

If you currently don't have Tesla stock in your portfolio, it might be a good time to consider adding it. The company has already given the market and investors a rough outlook, and overall sentiment toward Tesla isn't great from an investor's perspective. This means that any positive news in the future could quickly boost confidence in the company and its stock.

Tesla is testing Robotaxi and is focusing heavily on it. Elon Musk is back in the game (hopefully without further political distractions). The company has also started limited production of more affordable models, with deliveries expected in the second half of this year.

Technicals

Tesla stock is currently trading around $300 and has multiple support levels at this price range. The 200-Day Moving Average stands at $321.7, offering a favorable risk-reward opportunity to enter the stock at current levels unless a negative catalyst pushes the price below its multi year support.

Downsides

One political comment from Musk or any further move from his political Party could ruin everything as his political statements continue to frustrate investors. Additionally, sales are still plunging, with declines in France and Denmark for the seventh straight month, showing that Tesla is still struggling.

Many investors remain concerned about the company's turnaround strategy. Growing competition is another challenge, if Tesla's market share keeps shrinking, especially with BYD expanding rapidly, it will likely impact the stock negatively. However, Musk has a history of surprising the world, and Tesla could stage a strong comeback.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.