Veteran tech watcher Paul Meeks says the bears may have more meat to tear than the carcass that is Tesla’s stock price.
“Unfortunately, if you’re a chartist or a technical analyst, there’s no floor for this stock,” Meeks, a portfolio manager at Independent Wealth Solutions, said on Yahoo Finance Live (video above). “Will it go back down to $29? I wouldn’t actually be surprised in the years to come.”
Tesla shares last traded below $30 per share in January 2020, according to data from Yahoo Finance. Since then, the stock is up 289% to $113 — but is 70% below the record high of $402 hit on Jan. 4, 2022.
Certainly, the start to the year for Tesla has done little to calm bears like Meeks.
Shares of the EV maker fell more than 12% on Tuesday, marking the biggest one-day drop for the stock in more than two years. At one point, the stock hit its lowest level since August 2020 as investors reacted to a lackluster fourth-quarter delivery number released on New Year’s Day.
Tesla shares rallied 4% on Wednesday after CEO Elon Musk lost about $9.1 billion in net worth in Tuesday’s session, reflecting the decline in the value of his Tesla shares.
The company saw shipments climb 18% sequentially to 405,000 in the fourth quarter, missing consensus forecasts of 418,000. That number brought Tesla’s total shipments in 2022 to 1.3 million units, up 40% year over year but below the company’s guidance of 50% growth.
A Tesla sits in the mud of a gated community in Montecito, Calif., Tuesday, January 9, 2018. (AP Photo/Michael Owen Baker)
The supply disruption further fueled concerns on the street about demand for Tesla’s vehicles, which was a key factor that helped send shares down 65% in 2022. JPMorgan analyst Ryan Brinkman cut his earnings estimates and price target for Tesla significantly in the wake of the soft results.
Meeks shares Brinkman’s concerns when asked, leaving him far behind for the stock, even at its cheaper levels.
“If I were interested in going long, I wouldn’t even buy Tesla here,” Meeks added. “I wouldn’t buy Tesla significantly lower from here. I think there are all sorts of tech turnarounds that would be better positioned. I wouldn’t be surprised if Tesla went much, much, much lower.”
The story goes on
Brian Sozzi is a freelance writer and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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