Investing.com – Tesla Inc (NASDAQ: ) stock has had a particularly rough December so far, including down 8.88% at the close on Thursday, part of a 5th straight session of declines.
From a December 1 high of $198 to yesterday’s low of $122, Tesla stock has fallen more than 38%. And from the early January peak at $402, the decline is nearly 70%.
Keep in mind that Tesla shares, like most stocks, have been affected by the economic slowdown linked to central banks’ monetary policy, which is tightening rapidly to combat record inflation.
But Tesla has also been hurt by Elon Musk’s takeover of Twitter (NYSE: ), which has investors worried the star CEO isn’t paying enough attention to his electric car business.
TSLA shares have also been affected by Elon Musk’s multiple share sales, the latest of which took place last week, with the sale of $3.6 billion in shares, bringing the 2022 total to nearly $40 billion.
But at this specific point in Elon Musk’s stock selloff, it looks like investors no longer need to worry.
Elon Musk promises to stop selling Tesla shares
Musk said in a Twitter Space event Thursday:
“I’m not going to sell stocks until I know, probably in two years. Certainly not next year by any means and probably not the year after that.”
Tesla stock reacted positively after the market following those comments, rising nearly 3%. However, it is important to note that Musk has previously already promised not to sell Tesla shares before finally deciding to do so, as we have seen this year.
Note that Musk also warned of tough times ahead, predicting that the economy will be in “severe recession” by 2023 and demand for expensive goods will be weaker, which some might interpret as a sell warning for Tesla.
Is Tesla stock a buy?
Finally, in addition to the “good news” about Musk’s commitment to no longer sell Tesla shares, it should be noted that more and more analysts believe that despite the problems facing the company, the action has fallen enough to be a buying opportunity.
The bank Morgan Stanley (NYSE: ) notably named Tesla as one of its favorite electric car stocks for 2023 in a note published last week, noting that “currently, the only company capable of selling electric cars at margins equivalent to internal combustion engines” , and announced a target of $330.
Out of the 38 analysts following Tesla shares listed by Investing.com, a majority of 19 recommend a buy, 12 show a neutral stance and only 3 recommend a sell. Additionally, these analysts’ average target above $255 suggests more than 100% upside potential.
Finally, the InvestingPro Fair Value of Tesla stock, which synthesizes several recognized financial models, is shown at $203.59, or 62.4% above Thursday night’s close.