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Famous Analyst Says Tesla (TSLA) Lacks ‘Hot New Vehicle’ to Motivate People to Buy

We recently published a list of 10 Stocks Market Experts are Talking About These Days. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other stocks that market experts are talking about these days.

Piper Sandler’s Chief Market Technician Craig Johnson said in a latest program on CNBC that despite the recent market volatility and “negative” headlines, he sees buying opportunities for long-term investors.

“The headlines out here are extremely negative all over the place and the sentiment toward this market is absolutely awful. Typically, you find these readings near sort of bear market lows, which is what you typically see. And if you also start to look at the VIX, it is elevated out here at this point in time. Now, technically we have broken some uptrends, we’ve closed below 50 and 200-day moving averages, but we’re getting to some pretty washed-out levels. I started looking at new highs, new lows, breadth indicators, and all these pieces. And we’re starting to get to levels where you look back and say, “Is this 1989? Is this a period of time that’s like the great financial crisis or the ’87 market crash?” And I think the answer to that is flat out no. So, we’re setting ourselves up for, I think, a potentially pretty good buying opportunity. All this negativity, and again, as Warren Buffett has said, you’ve got to be greedy when people are fearful. When people are greedy, and definitely a lot of fear out here, that seems to me to be a little bit misplaced on the charts.”

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article, we picked 10 stocks notable Wall Street analysts were discussing over the past few days. With each company we have mentioned the latest hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

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Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Funds Investors: 99

Tim Higgins, business columnist at The Wall Street Journal, said in a recent interview with CNBC that Tesla, Inc. (NASDAQ:TSLA) is facing multiple challenges. He talked about the company’s decline in sales and the reasons behind it

“Musk has become very political globally, but also you’re hitting it on the head. Tesla’s lineup, its vehicles are relatively old. Sure, there is the Cybertruck, but that has never been seen as some sort of massive mass-market vehicle, very niche, especially among us buyers. It’s not something that’s going global exactly at this point. But then also the idea of the Model Y, there’s been some updates to it, some refreshes if you will. There’s some thought that maybe some buyers are on the sidelines waiting for that vehicle to come out, but it’s a big issue for Teslas. They don’t have a hot new vehicle out there to motivate people to come out and buy that sheet metal.”

Now that the era of “Trump bump” for Tesla shares are over, the stock is seeing the impact of some harsh realities facing the company. Tesla sales are falling all over the world despite the broader industry growth. For example, in California, the largest U.S. market for electric vehicle adoption and sales, Tesla sales fell about 12% year over year in 2024, causing its market share to drop from 60.1% in 2023 to 52.5% in 2024. Was it because Californians are buying fewer EVs? No. Californians purchased more than 2 million electric cars during the year, almost double when compared to the past two years.

Things aren’t looking good for Tesla in Europe, too. For example, in Germany, Tesla delivered just 1,429 new cars in February, down 76% from the same month last year. In contrast, battery-electric vehicle (BEV) registrations surged 30.8% during the month.

Tesla Inc’s (NASDAQ:TSLA) product lineup is showing signs of stagnation, with over 95% of sales still coming from the Model 3 and Model Y. Meanwhile, competitors are rolling out more advanced models. According to Reuters, Tesla’s market share in Europe is slipping as legacy automakers like BMW post stronger sales. Chinese competitor BYD is also gaining ground in Europe, despite talk of tariffs.

Polen Focus Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:

“The largest relative detractors in the quarter were Tesla, Inc. (NASDAQ:TSLA) (not owned), Thermo Fisher Scientific, and Broadcom (not owned). We’ve spoken at length about our rationale for not owning Tesla. The stock enjoyed a 54% return during the quarter, with effectively all of the share price performance strength coming in the post-election period, as the market expressed a positive view on Elon Musk’s prominent role in the incoming Trump administration and its potential implications for Tesla. While we agree this development should be a net positive for Tesla and recognize the company’s interesting future prospects for autonomous driving and humanoid robots, its current valuation demands that shareholders pay primarily for potential innovations that have yet to materialize, with uncertain risks and timelines, presenting a different type of risk profile than we are comfortable with. Today, Tesla is an automobile manufacturer limited to the higher-income segment and is increasingly challenged to sell vehicles when interest rates are not zero. As such, we continue to question the company’s long-term growth profile, its ability to scale a large robotaxi service (which seems to be the source of euphoria in Tesla shares), and its corporate governance.”

Overall, TSLA ranks 4th on our list of stocks that market experts are talking about these days. While we acknowledge the potential of TSLA, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.

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