Ingredients of the stock market disaster are a high price of shares, a company set for disappointing messages and a falling market. So let’s talk about Tesla (NASDAQ: TSLA).

Actions have dropped by 25% from the beginning of the year. But investors thinking about overlapping to discount shares should be very careful.

High expectations

There is no doubt that Tesla’s participation has high expectations. Profit on the action has dropped almost 41% from 2022, but the price of the shares has increased by 50% in the last two years. This suggests that investors are optimists that the problems that have recently had a profit burden will be fleeting. And they may be right.

Shares currently trade in price to profit (p/e) of 141. But if their earnings can return to the place where they were in 2022, it will fall to 71 without the price of the share. This is still a lot, but the point is that investors think that Tesla has a relatively uncomplicated way to at least double profit in the near future, which reflects a degree of optimism.

Potential of disappointment

High expectations are not a problem. However, in terms of car production, Tesla’s recent results indicate that its competitive position can be threatened. The latest news from Europe indicates that the supply numbers are not encouraging. Tesla’s sale went back while electric vehicles (EV) were generally upstairs.

This means that the company is losing its share in the market of its rivals. And the latest news from Hunter It is that it has a significant advantage when it comes to charging speeds.

All this indicates the potential of disappointment when Tesla reports his earnings Q1 this month. But the inevitable reserves do not end with this.

Falling stock exchange

The last cause of anxiety is the last decline in the American stock market. For several reasons, some of them are associated with import tariffs, investors are afraid of inflation.

As a result S&P 500About 6% discount on your ups. So investors can reasonably expect that Tesla – along with US supplies – takes lower, even without their own bad news.

This does not apply to the company, but it does not facilitate. A falling stock market can strengthen the effects of disappointing results from the basic industry.

All this is the justification for thinking that Tesla’s shares can now be a recipe for a disaster. But although I do not buy shares now, the long -term image may be completely different.

Robotaxia

I see this, the most vital for Tesla in the long term is the Robotaxi network. Unlike the sale of a car, this does not appear anywhere in the profit and loss account, but this may change.

The biggest obstacle is regulation, but I think that the role of Elon Musk in the government can facilitate in this. And if so, the game can change significantly.

I would not be surprised if Tesla’s shares are fighting this month when the company informs about its quarterly earnings. But I don’t think that long -term investors should focus on this.

In my opinion, the profitability of stocks is reduced to autonomous vehicles. We are too gigantic, but for investors who want to be more risky, it is worth considering at today’s prices.