Tesla Stock Struggles For Clear Direction With Conflicting Sales, Demand Signals

Tesla Inc TSLA shares are trading marginally higher Monday afternoon as investors weigh a mix of bullish institutional data against signs of weakening consumer demand in key European markets. Here’s what investors need to know.

See what is happening to Tesla stock here.

What To Know: Providing a tailwind for the stock, data from second-quarter filings revealed that Tesla was a top buy among hedge funds, indicating strong institutional conviction. This confidence was supported by positive sales news from Norway, where the company recorded a 24% year-to-date sales surge, bucking a downward trend across the continent.

CEO Elon Musk also made headlines last week by issuing a bold warning to short sellers that they would be “obliterated,” while reports surfaced of a potential software visualization upgrade using Epic Games’ Unreal Engine, reinforcing Tesla’s image as a technology leader.

However, concerns over European demand persist. The company is reportedly slashing monthly lease prices by nearly half in the U.K. to move inventory amid stiff competition and falling sales, which dipped over 60% in July. Similar double-digit declines have been recorded in markets like France, Denmark and Sweden.

This complex backdrop of strong institutional buying and future promise, contrasted with immediate sales pressures abroad, appears to have left investors cautiously optimistic, contributing to the stock’s modest gains late Monday.

Benzinga Edge Rankings: According to its Benzinga Edge stock rankings, Tesla exhibits the classic profile of a high-growth, high-momentum stock that trades at a premium price.

The data reveals exceptional Momentum with a score of 80.04, indicating very strong recent price performance. This is paired with a robust Growth score of 73.59, reflecting the company’s rapid expansion. Its Quality score of 62.53 suggests solid underlying business fundamentals.

The most significant flag for investors, however, is the extremely low Value score of just 9.93. This signals that the stock is considered very expensive by traditional valuation metrics and is not a bargain buy.

TSLA Price Action: According to data from Benzinga Pro, Tesla shares closed up 1.39% at $335.16 on Monday. The stock has a 52-week high of $488.54 and a 52-week low of $202.59.

How To Buy TSLA Stock

By now, you’re likely curious about how to participate in the market for Tesla — be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Tesla, which is trading at $335.30 at the time of writing, $100 would buy you 0.3 shares of stock.

If you’re looking to bet against a company, the process is more complex. You’ll need access to an options trading platform or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option or sell a call option at a strike price above where shares are currently trading — either way, it allows you to profit from the share price decline.

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