Tag: Why is Tesla Stock Price Falling

Is Tesla Stock a Buy Right Now or Should You Wait?

Stock Market News: Is Tesla Stock a buy?
Stock Market: Is Tesla Stock a buy?

Tesla stock rose 3% to $112.71 on Wednesday after having one of its worst weeks following the Christmas holiday.

Shares had fallen more than 8% on Tuesday to $109.10.

Recently the company has had issues with production at its Shanghai facility due to its fresh outbreak of Covid cases.

Tesla stock is currently down -71% this year, it’s worst year yet.

But we all know a bear market yields the best discounts prior to takeoff (no pun intended).

Is Tesla stock a buy right now or should you wait?

This article is going to provide you with some insight to help you make that decision for yourself.

Let’s get started.

Will Tesla Shares Go Up or Keep Falling?

Tesla stock investing

Our bear market has plunged companies to the ground and Tesla is no exception.

In fact, the probability of us having to survive this bear market much longer is much higher than seeing a complete reversal overnight.

Bank of America and Wells Fargo CEOs are predicting a recession will hit the United States by Q1 of 2023.

If the United States is hit by a recession in the new year, then we can expect a prolonged bear market.

BofA economists expect market volatility to persist going into 2023.

Tesla CEO Elon Musk sold 22 million shares of the company cashing in approximately $3.6 billion earlier in December according to this SEC filing.

After the massive selloff, Elon said during a Twitter space call that he will not sell any Tesla shares for about two years.

The reason behind the selloff?

Musk said he sees a ‘serious’ recession in 2023 and is preparing for a worst-case scenario.

Should You Sell Tesla Shares?

Is Tesla stock a buy? Should you sell Tesla shares?
Is Tesla stock a buy? Should you sell Tesla shares?

One thing I’ve learned is that if profits are up and a CEO sells, that is the perfect time to sell, for now.

But that’s just what I’ve learned.

Perhaps today might not be the best time to buy Tesla stock or sell it, considering shares have room to drop at better discounts.

Depending on your financial situation, it could be a great time to cash out and hold, or simply continue to hold while waiting for the next big dip.

Everyone’s situation is different.

But I’m curious to know where you stand.

Are you a Tesla shareholder?

Will you be buying Tesla stock in 2023?

Leave your thoughts below.

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5 Reasons Why Tesla Stock Is Falling

Why is tesla stock going down?

Woah, what just happened. Tesla was my most valuable stock. It was my most expensive stock at that. The company has lost a third of it’s value in only a matter of a few weeks. Retail investors are wondering what’s going on. Here are 5 reasons why Tesla stock is falling.

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#1. Bull Investors Take Tesla Stock Profits

Bull Investors are taking Tesla stock profits

As Tesla stock continues to plunge, bull investors have begun to take profits on the way down.

This makes a lot of sense considering Tesla stock is mainly a stock most investors will trade once it hits high profit margins.

These same investors will then buy the stock again when it is at a bargain to buy. See, Tesla doesn’t pay it’s shareholders any dividends so there’s no loyalty to holding the stock during red days. Or weeks in this case.

Because of this massive selloff, we continue to see a major decline in the stock price.

#2. Tesla Has Real Competitors Now

Ford Motor Company Mach E Tesla Competitor
Ford’s Mach E

Competitors such as NIO and Ford Motor Company have taken lots of attention away from Tesla.

This means new retail investors are looking at a more affordable companies to invest in who also have massive potential in the EV sector.

NIO stock sits at $35.21 while Ford Motor Company sits at $12.65 as of March 8th. With these stocks being much more affordable than Tesla, it’s a more attractive option for new retail investors.

#3. Tesla’s Quality Issues Catch Up

Tesla's quality issues catch up
Tesla has had major quality issues

Our love for Tesla has had many of us actually ignore the fact that these vehicles have many quality issues.

Consumers who had addressed their concerns to dealerships were ultimately told there was nothing they could do about it.

Quality issues have included:

  • Gaps between body panels
  • Misaligned panels
  • Poor paint jobs
  • Chipped glass

Well now the company’s quality issues are catching up and consumers are looking at the shinny new toy, being NIO and Ford.

These quality issues are causing sales to dive as consumers have been exposed to these faults by current Tesla owners.

#4. More Than 135,000 Vehicles Are Recalled

Tesla recalls more than 135,000 vehicles
Tesla recalls more than 135,000 vehicles

Not only are Tesla owners experiencing quality issues, but now the company has recalled more than 135,000 vehicles with media control unit failures.

These failures led to the loss of several safety related features in Tesla vehicles (via. CNBC)

Unfortunately, this is bad press which as we all know deeply influences the movement of the stock market.

#5. Elon Musk on Twitter

Elon Musk on Twitter about Dogecoin
Elon Musk and Dogecoin

If you aren’t aware, Elon Musk has recently figured out that his influence on social media can sky rocket (pun so intended) the price of crypto currency.

However, serious shareholders might not take his enthusiasm so lightly as Doge coin is still primarily seen as a joke to most investors.

While Bitcoin is taking a much more serious approach in the finance world, Elon’s lack of concern for the volatility and participation of Doge has many investors questioning the face of Tesla’s moves.

And again, unfortunately this sort of negative perception isn’t favored by shareholders as it’s mainly perceived as reckless.

Is Tesla A Good Stock To Buy?


We personally believe Tesla is still a great stock to buy and hold. The company has a lot of potential and even though Elon can be quite silly at times, he’s an innovator and a great leader.

With tech stocks dropping at the moment, retail investors might want to consider getting in while it’s low. Why? Because this stock will eventually skyrocket back up. Only this time it won’t be where we’ve seen it recently, but higher.

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