---
title: "Is this a buying opportunity for Tesla as it plunges over 12% to a new low?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/106774106.md"
description: "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%!\""
datetime: "2024-01-26T03:31:16.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/106774106.md)
  - [en](https://longbridge.com/en/news/106774106.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/106774106.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/106774106.md) | [繁體中文](https://longbridge.com/zh-HK/news/106774106.md)


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

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!

![Image](https://pub.pbkrs.com/cms/2024/0/FY5tRrrqtjshtihdGuaYZr6xJmtxUKj9.jpg?x-oss-process=style/lg)

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!

"A 100% success rate! An average return of 18%!"

![Image](https://pub.pbkrs.com/uploads/2024/31eb3b5163dfa0250f0da0bd8a61dd5c?x-oss-process=style/lg)![Image](https://pub.pbkrs.com/uploads/2024/0a9b4a7f35f3f0151c5b3bb43bf2c156?x-oss-process=style/lg)

_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.

### Related Stocks

- [Tesla, Inc. (TSLA.US)](https://longbridge.com/en/quote/TSLA.US.md)

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