When it comes to electric vehicles, Tesla (NASDAQ:TSLA) leads the way. Yet it’s also been on a significant decline lately. Is there a bottom ahead for Tesla? Some say it’s not as far off as you may think, and others believe a solution to Tesla’s plunge is an executive board change away. With Tesla down again in Tuesday’s trading, it’s clear something needs to happen.
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Fundstrat’s managing director, Mark Newton, was clear: “Tesla is now officially oversold.” Newton went on to elaborate that the stock charts suggest a bottom may be just weeks or days away. Tesla’s latest earnings report may put the bottom in place, and then, a rally could start up with spring’s arrival. With fourth-quarter results and an upcoming Investor Day event on March 1, there may be some critical visibility that provides a path back to higher share prices.
Meanwhile, one long-time Tesla investor thinks he may have the answers to Tesla’s ills and a way to push the share price back up. Ross Gerber recently noted that he could do the job. All it would require is meeting two conditions.
One, current CEO Elon Musk would need to put Gerber on the board. Two, Musk would have to listen to Gerber for five whole minutes. Then—assuming Musk puts Gerber’s recommendations into play—everything would be better. A set of new SEC rules may give Gerber the role he wants, and with an “extensive” government probe into Tesla’s Autopilot system proceeding quickly, it’s safe to say something should be done.
Regardless of whether you’re in Gerber’s camp or Newton’s, analysts are still largely on Tesla’s side. Analyst consensus calls Tesla a Moderate Buy. Plus, with an average price target of $251.48, Tesla stock offers a 113.57% upside potential.
