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Tesla has made a big contribution to the world by showing that electric vehicles are a viable substitute for gas-powered ones. What’s more, Tesla has become a fast-growing profitable company — defying those who sold short its stock.
Nevertheless, despite its rapid second-quarter revenue growth, I see four reasons to avoid buying Tesla stock:
If you want your stock to go up, you should beat expectations and raise guidance. Tesla’s performance along these lines was mixed in the second quarter.
Tesla has made a big contribution to the world by showing that electric vehicles are a viable substitute for gas-powered ones. What’s more, Tesla has become a fast-growing profitable company — defying those who sold short its stock.
Nevertheless, despite its rapid second-quarter revenue growth, I see four reasons to avoid buying Tesla stock:
If you want your stock to go up, you should beat expectations and raise guidance. Tesla’s performance along these lines was mixed in the second quarter.
Tesla stock — which trades 40% below its all-time high last November — is up 2.8% on July 21 pre-market trade.
Tesla seems to have more demand for its products than it can satisfy. In a letter to shareholders, Tesla noted that its newest plants — in Germany and Texas — are aiming to increase production.
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However, doing so will depend on Tesla’s ability to launch new vehicles — for example, it intends to start delivering its Cybertruck in mid-2023 — and improve its supply chains. Source: Forbes
