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Proprietary Data Insights Top Auto Manufacturer Stock Searches This Month
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Tesla: The Classic ‘Buy The Dip’ Story Stock
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Tesla (TSLA) remains, by far, the most-searched automotive stock in Trackstar, our proprietary sentiment indicator that tracks investor interest across the platforms of our 100+ financial media partners. Overall, TSLA currently ranks third, behind only Apple (AAPL) and Nvidia (NVDA). Nvidia, Apple and Tesla. Three stocks The Juice thinks could and probably should form at least part of the core of a long-term portfolio. We recently made our case on Nvidia, suggesting you buy on any weakness. Turns out that — as of the moment — we were right. We like Apple because it’s the perfect example of a company maturing into a dividend aristocrat right before our eyes. Keep buying Apple now and you’ll thank us later as dividend reinvestment in the stock starts to pay exponential rewards. As for Tesla, we look at it more like Nvidia. Both companies are at the forefront of what are — for all intents and purposes — huge, early inning consumer technology/lifestyle/everyday life trends. Of course, for Nvidia, it’s artificial intelligence. And, for Tesla, it’s electric vehicles (EVs). With this as the backdrop, let’s consider Tesla from two standpoints — as a stock and as the EV market leader. As a way to update you on exactly what’s going on with the company these days. For as popular as the stock is, sometimes it gets lost in the shuffle of a mix of things, including pure AI plays dominating the headlines, negativity around the EV market and Elon Musk’s tendency to create controversy that has little, if anything to do with Tesla. First, TSLA is the ultimate buy the dip stock. It’s one of those names we think it makes sense to regularly buy, but in small increments. Keep some cash behind double down on dips. Because — yeah, TSLA stock is down about 16.5% over the last year, but the dips. Consider April 19, 2024 when TSLA dropped to roughly $147 or August 7, 2024 when it bottomed after sustained downside at around $192. Now, TSLA trades for — give or take — $230 per share and actually up approximately 42% over the last six months. The Juice doesn’t typically advocate timing the market or individual stocks, but if you have watched TSLA long enough you know it’s one of the best examples of establishing one hell of a nice cost basis if you buy when or as it’s tanking. Because part of the thing here is that Tesla will not only trade on its own earnings, merits and Musk’s antics, it will also trade on what’s happening with EVs. To that end, make no mistake, Tesla still dominates. If it’s losing any ground, this is merely a testament to its dominance. Without Tesla, there would not be a handful of viable contenders taking away little bits and pieces of EV market share. To illustrate, as of Q2/2024, here the top EV models by market share:
When that (sorry) ugly Cybertruck beats models from Toyota and Ford, you know Tesla has something going for itself. As for EV purchases, they now make up 8.35% of new car purchases, nipping at the heels of Gas/Electric hybrids, which are at 9.68%. Here again, progress only made possible thanks to Tesla. We like Uber (UBER) and DoorDash (DASH) because they’re story stocks. Tesla fits that category as well. It is at the helm of the EV market. It sets the tone and literally makes everybody else’s sniffs or hopes of success possible. These are the companies you want to buy. UBER and DASH at the forefront of Amazon-like consumer ecosystems. NVDA at the forefront of driving AI innovation and uptake. TSLA at the forefront of one of the key cogs in the future of transportation.
The Bottom Line: Buy the leaders in growing spaces. Areas of the economy with a future. No matter what happens politically, it’s a pretty safe bet that we’ll see a continued push to make electric vehicles more mainstream. Today, especially in big cities, Teslas on the road remind The Juice of when the Toyota Prius looked and felt ubiquitous. Give it 5, 10, maybe 15 years and we think Tesla’s ubiquity will match the current day omnipresence of the iPhone. So the suggestion: Buy a little TSLA every month or every other week. And buy a lot of TSLA when the stock tumbles. |
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