Is Tesla Stock (NASDAQ: TSLA) A Buy On The Dip? Cathie Wood Is Adding

Tesla share price (TSLA) continues to take a beating, with its' earnings yesterday falling well foul of expectations, and the stock pushed further into the red, dropping 4.9% on the day. Early in the pre-market today TSLA shares have shed another 0.97% to leave the YTD performance as bad as it was previously good.

Losing 1/3rd of value in just a shade over 3 months is a pretty staggering fall from grace for a company that had bulls on its side for so long. When considering that Tesla still holds a market cap of $522.13B, you have to begin to wonder where the bottom is, and whether TSLA shares might even represent value at the current level?

Cathie Wood's Ark Investment fund was noted as adding 235,000 Tesla shares yesterday to add to an already strong holding.

Tesla's aspirations remain robust, particularly in its pursuit of becoming a frontrunner in the burgeoning self-driving sector. The company has aggressively positioned itself to lead the charge into an autonomous driving future, aiming to launch fully self-driving vehicles by the 2030s. If realized, this could open significant new revenue streams for Tesla, positioning it at the forefront of a transformative automotive era.

However, investing in the vision of self-driving cars carries its own risks, as reflected in the cautious stance adopted by some market commentators. Given the speculative nature of Tesla's long-term plans in the self-driving space, and the distant timeline for seeing these plans come to fruition, investors are advised to weigh the potential against the inherent risks.

What is The Tesla Outlook?

The investment community's divided sentiment is evident in the recommendations from various market analysts. With Cathie Wood a notable bull, TSLA holds a consensus ‘Hold' rating from the 35 to lay down price targets. 9 buys and 7 sells are complemented 19 holds.

A high price target from analysts of $320, set against a low mark of $23.53 really does show the true division of the sentiment. Off the back of an earnings deliveries miss that was termed a “disaster” by many, there was one analyst to revise down price targets, albeit holding firm on the ‘outperform rating'. Baird lowered their lofty mark of $300 to a still aggressive $280 as it was commented “that bears will use the lower deliveries as fuel for the demand debate.”

The primary concern for investors appears to be whether Tesla can justify its ambitious valuation within a realistic timeframe and amidst growing EV competition.

Investors considering Tesla must now deliberate if the recent slip in stock prices represents a temporary setback for a company destined to dominate the EV and autonomous vehicle markets or if it's indicative of deeper issues that could challenge the company's growth narrative. Is Tesla's dip a discount for future gains, or a red flag warning investors to exercise caution?

As with any speculative investment, the balance between potential rewards and risks remains delicate. Those with an optimistic view of the long-term prospects might see the current dip as a window of opportunity to buy Tesla shares at a more reasonable valuation. Conversely, those concerned by slowing delivery numbers, valuation multiples, and the long wait for self-driving technology may consider the stock's future less certain.

As Tesla navigates through what is undoubtedly a rough patch towards an innovative, yet uncertain future, only time will reveal whether today's prices will be seen as a trough preceding a peak or the beginning of a prolonged descent.