It’s been a rollercoaster ride so far this year for Tesla (TSLA) investors, as the stock has seen thrilling highs and concerning lows. 

The stock fell roughly 40% in a single month over the summer, but has since begun its road to recovery. It’s up 17% in the past month, and looks to be continuing its trend in the right direction this week.

TSLA gained more than 4% yesterday on what was an otherwise lackluster day of trading for the stock market, in which the Dow Jones Industrial Average and Nasdaq both remained fairly stagnant.

The stock continued where it left off this morning, as it’s up another 5% and counting so far in Thursday’s session. This puts it at a gain of more than 13% in the past week.

There is still a ways to go before TSLA is back to its 52 week high of just under $279. which came nearly a year ago on September 14, 2023. But after a tumultuous year so far, investors will be satisfied with a slow, steady climb back towards the stock’s true potential.

Just over a month ago we talked about Tesla’s weak earnings and outlook for the second quarter sending shares lower. Shares sat at just $219 at the time, and we found that the stock was rated a HOLD in the VectorVest stock analysis system. 

The company won’t deliver Q3 results until October 18. In the meantime, though, should you hop on the latest rally and buy TSLA? Not so fast. We’ve taken another look at the stock below and things have definitely changed from our last TSLA update back in July. Here’s what you need to know…

TSLA Still Has Very Poor Upside Potential With Very Good Safety, But Timing is Good Now

VectorVest is a proprietary stock rating system that helps you determine what to buy, when to buy it, and when to sell it. It saves you time and stress while empowering you to win more trades, giving you all the insights you need in 3 simple ratings.

These are relative value (RV), relative safety (RS), and relative timing (RT). Each sits on a scale of 0.00-2.00 with 1.00 being the average, allowing for quick and easy interpretation. 

It gets even better, though. You’re given a buy, sell, or hold recommendation based on the overall VST rating for any given stock at any given time. Here’s what we found for TSLA:

  • Very Poor Upside Potential: The RV rating compares a stock’s long-term price appreciation potential (based on a 3 year price projection), AAA corporate bond rates, and risk. This makes it a far superior indicator than the typical comparison of price to value alone. TSLA has a very poor RV rating of 0.20, which is worse than a month ago.
  • Very Good Safety: The RS rating is a risk indicator. It’s computed from an analysis of the company’s financial consistency & predictability, debt-to-equity ratio, business longevity, sales volume, price volatility, and other factors. The RS rating has decreased slightly for TSLA to 1.25, but it’s still very good.
  • Good Timing: The RT rating is based on the direction, dynamics, and magnitude of the stock’s price movement. It’s calculated day over day, week over week, quarter over quarter, and year over year. The biggest change is that TSLA has a good RT rating of 1.15 now, reflecting its performance over the past month or so.

The overall VST rating of 1.02 is better than when we last reviewed this stock, but TSLA is still rated a HOLD in the VectorVest system. This could change quickly, though - so stay up to date on this opportunity and learn more with a free stock analysis at VectorVest today!

Tesla Stock is Up 13% in the Past Week, Outpacing Peers and the Market as a Whole: Time to Buy?

Want These Types of Insights at Your Fingertips so You Can Win More Trades?

Use VectorVest to analyze any stock free. VectorVest is the only stock analysis tool and portfolio management system that analyzes, ranks and graphs over 18,000 stocks each day for value, safety, and timing and gives a clear buy, sell or hold rating on every stock, every day.

VectorVest advocates buying safe, undervalued stocks, rising in price. TSLA is rallying ahead after an up and down year so far, outperforming its peers and the stock market as a whole this week. The stock still has very poor upside potential and very good safety, but timing is good now. Nevertheless, the stock is still a HOLD.

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