The stock price of Tesla started to rise in the beginning of May after a busy few weeks with tariff changes, profit reports and discussions about potential management changes. This upward movement in the share price was based on recent announcements regarding the introduction of the long-awaited robotaxi service that was set for Austin, Texas in June.
Advertisement: Offers with a high yield savings
Read the following: Warren Buffett's Berkshire Hathaway has bought more than $ 73 million in shares of this technology company – here is why
For you: how much money is needed to be considered in each state as a middle class?
After a low under $ 222 at the beginning of April, Tesla's share closed on Monday 12 May at $ 318.38, after he had regained his trillion-dollar market capitalization.
What should you do as a result of the rise in the stock price of Tesla? This is what the experts have to say about investing in Tesla at the moment.
“Tesla's recent increase is more driven by investors psychology than hard data,” said James Francis, an investment expert and CEO of Paradigm Asset Management. “Although the announcement of robotaxi is exciting, it is still just an announcement, nothing more.”
In other words, the current hype is a product of narrative speculation instead of proven acceptance or income, because the launch has not yet happened.
He added: “If the expectations of the timeline of the robotaxi, the prices or regulations are not paid, the correction can be considerable.”
Although the recent news can be exciting for investors, the launch and which income generates a role in the question of whether investing in Tesla is a good decision.
George Narinyan, an investing expert and the CEO of Value Sense, explained: “The recent Tesla -Senes movement follows a well -known pattern, in which the announcements of Elon Musk and innovations such as the Robotaxi, despite the constant competition of Rivals.”
The experts are careful when investing in Tesla, because this launch still has to play in real time.
Keep in mind: make these common investment error? Experts share the easy (but urgent) solution
“The appreciation of Tesla is always based on the story that Elon Musk is a genius and that the future of the car industry is electric cars,” said Robert R. Johnson, Ph.D., CFA, CAIA, professor of Finance at Heider College of Business, Creighton University.
“Even if we accept both buildings, the rating of Tesla is simply not justified,” he explained. “The story is not only dependent on the future of electric vehicles, but trusts the idea that Tesla will be the big winner in the EV Sweepstakes.”
Johnson emphasized that investing in Tesla is not worth the risk at the moment, although the stock price has risen lately. He also pointed out that Elon Musk made a strategic mistake by wading in political waters.
