Veteran technology observer Paul Meeks says bears may have more meat to rip That carcass is Tesla’s stock price.
“Unfortunately, if you’re a chartist, a technical analyst, this stock doesn’t have a floor,” said Meeks, portfolio manager at Independent Wealth Solutions. Yahoo Finance Direct (video above). “Will it drop to $29? I really, in the next few years, won’t be surprised.”
Tesla stock last traded below $30 a share in January 2020, according to Yahoo Finance data. Since then, the stock has rallied 289% to $113 — but is down 70% from its record high of $402 reached on January 4, 2022.
To be sure, the start of the year hasn’t done much for Tesla to quiet bears like Meeks.
Shares of the EV maker fell more than 12% on Tuesday, marking the stock’s biggest single-day drop in more than two years. At one point, stocks hit their lowest levels since August 2020 as investors reacted to lackluster fourth quarter delivery numbers Released on New Year’s Day.
Tesla stock rebounded 4% on Wednesday after CEO Elon Musk shed about $9.1 billion in net worth in Tuesday’s trading. reflect the loss in the value of his Tesla stock.
The company saw fourth-quarter deliveries increase 18 percent consecutively to 405,000, missing the consensus forecast of 418,000. This brings Tesla’s total 2022 deliveries to 1.3 million units, up 40% year over year but below the 50% growth the company guides.
missed delivery continue to promote concern on the Street about demand for Tesla vehicles, which is a major factor driving the stock down 65% in 2022. Notable JPMorgan analyst Ryan Brinkman cut his profit estimate and price target on Tesla after soft results.
Meeks shares Brinkman’s concern about demand, which keeps him on the sidelines for the stock, even at the cheaper price point.
“If I was interested in investing for the long term, I wouldn’t buy a Tesla even here,” Meeks added. “I wouldn’t buy a Tesla even at a significantly lower price from here. I think having all kinds of technological changes would be in a better position. I wouldn’t be surprised if Tesla drops a lot, very, very much. lots of.”
Brian Sozzi is an editor-in-chief and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and more LinkedIn.
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