Even Tesla (NASDAQ: TSLA) couldn’t escape the vast market sell-off, throwing even the most safeguarded portfolios into the red at a time of such unprecedented economic uncertainty. Now though, investors should be keen to approach oversold companies with evidently firm financial fundamentals; cue Tesla.
Tesla sits above the competitive mist that so firmly grips the emerging EV market. IPOs, SPAC, and complete directional shifts have little effect on Tesla’s position as a prominent market giant, and it might be some time before anything changes.
Since the middle of March, Tesla has begun to rally again and the stock looks set to continue its gains into the coming months as strong delivery numbers are expected. Wedbush analyst Daniel Ives points out that Tesla’s deliveries are trending well ahead of expectations based on the current demand trajectory in the March quarter. Ives believes the company could be on track to produce around 2M units by the end of FY22. Given this projection, Tesla stock still appears oversold despite the recent rally.
Even the global leader of EVs wasn’t immune to supply chain disruption. In order to navigate bottlenecks in China, Tesla built Giga Berlin; a new factory capable of expanding production to about 500,000 units annually and will aid deliveries across Europe. The Model Y SUV will be the first to roll out of the factory in the next 18 months.
The opening of Giga Berlin welcomes a new page in the Tesla story. The recent risk-off mentality that distanced investors will likely be revoked in favor of Tesla’s seemingly never-ending growth story. TSLA stock currently trades at a small daily loss of 0.10% in a quiet break from its recent rally.
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Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.