2 Very Different Ways to Trade Tesla as January Earnings Approach

Core Viewpoint - Tesla Inc. is experiencing a downturn in stock performance, with a decline of over 12% since reaching all-time highs just before Christmas, leading to a challenging outlook ahead of its upcoming earnings report [2][7]. Stock Performance - The stock has logged its longest run of red days in months, indicating a significant shift in momentum [2]. - Technical indicators show a bearish crossover in the MACD and an oversold relative strength index, suggesting short-term weakness [3]. Market Context - Tesla's shipments from its China factory have fallen for the second consecutive year, raising concerns about a broader slowdown in global electric vehicle (EV) demand [4]. - BYD Company Limited has been confirmed as the world's largest seller of fully electric vehicles in 2025, adding competitive pressure on Tesla [5]. Investment Strategies - One potential strategy is to view the recent selloff as a buying opportunity, as such pullbacks are rare for Tesla after reaching new highs [5][6]. - The stock's price-to-earnings (P/E) ratio has adjusted downward, potentially easing concerns for long-term investors who see this dip as a chance to build or add to their positions [6].