The following is a 3rd party contribution
Tesla’s stock price recovered much of its recent losses triggered by the recent global market sell-off, and the company is currently trading around USD 330. This is slightly below the level it reached on January 25th, after which it rose to USD 354, fell as low as USD 310 and then rebounded to USD 357. However, it is currently moving back down and could soon approach the previous support level of USD 309.54.
Whether TSLA continues to fall or stages another rally, traders can take advantage of all price movements by using stock trading platforms. Many brokers, such as UFX.com, offer numerous trading tools and advanced charts, allowing members to make more informed trading decisions. The question for many is now whether Tesla stock represents a sound investment.
The valuation of the company still seems too high for many analysts, since the company is yet to make a profit and is burning a lot of cash, not to mention its production problem regarding the new Model 3. According to Barclays, the electric vehicle producer’s stock should be sold, while Morgan Stanley reiterated its “equal weight” rating at the beginning of February with a price target of USD 379. Even if its stock rises, Tesla has serious challenges to address, ones that are likely to weigh heavily on the company’s valuation.