Tesla Bulls Need to Tread Very Carefully Right Now

Core Viewpoint - Tesla's stock has faced significant pressure, with a 3.5% drop leading into the Labor Day weekend, raising concerns about the sustainability of its rally since April [1] Group 1: Stock Performance and Technical Analysis - Tesla's current stock price is $329.36, with a P/E ratio of 190.38 and a price target of $303.31, indicating a potential downside of 7.91% [2][9] - The stock has encountered resistance between $350 and $360, failing to break through this level multiple times in recent months [2][3] - If selling pressure continues, the stock may test the $320 level, which could signal a breakdown of the April uptrend [12] Group 2: Demand and Competitive Landscape - Tesla's registrations in Sweden fell by 84% year-on-year in August, and sales in Europe decreased by approximately 40% in July, indicating weakening demand [4] - The company faces intense competition from traditional automakers entering the electric vehicle market, which threatens its previously unassailable market position [5][8] - Management has promised "volume production" of a more affordable EV by year-end, but this delay may result in lost market share [5] Group 3: Analyst Sentiment - Analysts have shown cooling conviction towards Tesla, with a lack of positive updates from major firms contributing to a bearish sentiment [9][11] - Goldman Sachs reiterated a Neutral rating, citing potential adverse effects from the expiration of U.S. federal EV tax credits and rising competition as limiting factors for the stock's upside [10]