Tesla stock continues to fall, analysts evaluate buying opportunities

Tesla stock (NASDAQ: TSLA) continues to slide, presenting buying opportunities to investors. Analysts are beginning to spar with the idea that the automaker’s shares may be nearing an adequate purchase price after a 70 percent slide in the past year on Wall Street.

Fundstrat’s Global Head of Technical Strategy Mark Newton said on CNBC on Wednesday that, despite Tesla trading at levels that may not necessarily align with the company’s fundamentals, buying opportunities would continue to present themselves. Newton believes Tesla is a strong company, but the unpredictability of the market, along with several other indicators, has influenced some investors to lose faith in the stock.

Tesla stock closed at $113.64 on Wednesday before dropping more yesterday and opening with a sharp 5.70 percent decline on Friday morning. Today’s tough start could be attributed to Tesla’s decision to cut prices in China.

However, this may be the very buying opportunity Newton discussed during his appearance on CNBC on Wednesday.

“When [Tesla stock] gets down near $100, for me, by the end of the month, there will be some things that will line up that suggest the stock is a trading buy, and it could have a very sharp bounce,” he said.

Newton seems to believe Tesla’s earnings call at the end of the month could settle some investors from relinquishing their positions.

“By Tesla’s earnings by the end of the month, there is going to be some opportunity, I believe,” he added.

Other firms are also changing their tune on Tesla. Edward Jones changed its ‘Hold’ rating on Tesla stock to ‘Buy’ yesterday.“We believe Tesla’s new product launches will allow it to take advantage of this expanding market,” analyst Jeff Windau wrote in a note to investors. “In our opinion, the share price of Tesla does not reflect its long-term growth opportunities.”

Tesla stock is down over 41 percent in the past 30 days. The company missed consensus estimates on deliveries for Q4 2022 but still reported its strongest quarter as a company and delivered over 1 million vehicles in a year for the first time in its history.