Overnight, Tesla plunged more than 12%, marking the largest single-day decline in a year, wiping out $80 billion in market value. The closing price of $182.63 reached a new low since May 2023.
This also means that compared to the historical high of $414.5 set in 2021, Tesla's stock price has fallen by over 50%!
Should we give up or buy the dip? In the stock market, crisis may equal opportunity!
<img src="https://pub.pbkrs.com/cms/2024/0/FY5tRrrqtjshtihdGuaYZr6xJmtxUKj9.jpg?x-oss-process=style/lg" alt="Image" original-src="https://pub.pbkrs.com/cms/2024/0/FY5tRrrqtjshtihdGuaYZr6xJmtxUKj9.jpg"/>
Researcher Jason Goepfert found that every time Tesla drops at least 5% to a 6-month low, the stock rebounds strongly within the next 30 days!
&#34;A 100% success rate! An average return of 18%!&#34;
<img src="https://pub.pbkrs.com/uploads/2024/31eb3b5163dfa0250f0da0bd8a61dd5c?x-oss-process=style/lg" alt="Image" original-src="https://pub.pbkrs.com/uploads/2024/31eb3b5163dfa0250f0da0bd8a61dd5c"/><img src="https://pub.pbkrs.com/uploads/2024/0a9b4a7f35f3f0151c5b3bb43bf2c156?x-oss-process=style/lg" alt="Image" original-src="https://pub.pbkrs.com/uploads/2024/0a9b4a7f35f3f0151c5b3bb43bf2c156"/>
Image source: @jasongoepfert
Zacks Investment Research further points out that Tesla's valuation is now at a low point: the current price-to-book ratio is 12.19, the lowest level since early 2020. The last time Tesla had such a low price-to-book ratio, the stock price soared from $35 to $400.
Meanwhile, Tesla's competitors in the industry also seem to be in a state of collapse: NIO, Rivian, and Lucid's stock prices have all fallen by over 90% from their historical highs.
More importantly, Tesla's cash flow remains stable, and the board of directors can choose to boost the stock price through share repurchases.

TSLA

Crisis is an opportunity. Researchers have found that whenever Tesla falls by at least 5% to a 6-month low, the stock will rebound strongly in the next 30 days! "100% success rate! Average return rate of 18%!"

Is this a buying opportunity for Tesla as it plunges over 12% to a new low?