Insights

Why Tesla stock just gave back half of Monday’s gains

FSD v.9.0 Beta may not be as impressive as advertised.
The post Why Tesla stock just gave back half of Monday’s gains appeared first on The Motley Fool Australia. –

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

After racing upward by more than 4% in Monday trading, Tesla (NASDAQ: TSLA) give back half of its stock price gains Tuesday.

As of 2:52 p.m. EDT, shares of the electric car manufacturer were down by 2.5% from Monday’s close.

So what

So what was troubling Tesla on Tuesday? Well, for one thing, there’s the ongoing trial questioning the propriety of its $2.6 billion acquisition of SolarCity in 2016. Plaintiffs in the case allege that CEO Elon Musk put his own financial interests ahead of those of Tesla’s shareholders. That’s obviously not a good look for the company.

Meanwhile, Wall Street is still digesting the import of recent pricing moves, and of Tesla’s weekend rollout of “FSD v.9.0 Beta,” the latest iteration of the software that’s supposed to help make Tesla cars autonomous and usher in an age of robo-taxis.

In a note it put out Tuesday morning, Goldman Sachs asserted that increased sales and higher prices on Teslas sold will help the company earn an above-consensus $5 a share in 2021. On the other hand, notes TheFly.com, Goldman does worry that chip shortages in the automotive industry could curtail Tesla’s production numbers this quarter. If Tesla isn’t able to sell as many higher-priced Model S and Model X cars as Wall Street expects, that could weigh on profits.

Now what

Rumors of a price hike on the FSD feature (which some speculate could rise from $10,000 currently to $14,000) could help boost Tesla’s profits, of course. On the other hand, in a note released Monday, analysts at Citigroup warned that as far as autonomous driving goes, the new FSD software “doesn’t appear very different than” the software that preceded it, and certainly falls short of the level of independence that would permit transforming Teslas into robo-taxis, as Musk has predicted.

In short, even with share prices down 24% from their highs earlier this year, Citi sees Tesla stock as overpriced. Unlike Goldman Sachs, which thinks Tesla is a “buy,” Citi still argues it’s a “sell” — and worth no more than $175 a share.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla stock just gave back half of Monday’s gains appeared first on The Motley Fool Australia.

Should you invest $1,000 in Tesla right now?

Before you consider Tesla, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Tesla wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

ASX investors were buying Tesla and Apple shares last week

ASX lithium shares are surging on Tuesday. Here’s why

Why Tesla stock took off on Monday

As markets fall, here’s how a Tesla death cross might actually matter

Why Tesla stock crashed and burned again on Wednesday

Rich Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!