Why Tesla’s Dip Isn’t the End of the Road

I’ve watched Tesla’s stock tumble this week amid news of BYD’s aggressive push into autonomous driving—a move that’s rattled investors. But before writing off Elon Musk’s EV giant, let’s dissect why this dip might be less about Tesla’s weaknesses and more about the hypercompetitive industry.

BYD’s decision to roll out its autonomous driving feature, God’s Eye, across all models—including its $10,000 Seagull hatchback—is undeniably disruptive. By bundling advanced driver-assistance systems (ADAS) into affordable cars, BYD is commoditizing technology that Tesla currently monetizes as a premium add-on (Full Self-Driving, or FSD, costs $12,000 upfront or $199/month).

This could pressure Tesla’s pricing power in markets like China, where BYD already outsells Tesla. However, the immediate impact in the U.S. and Europe remains muted. Regulatory hurdles, brand loyalty, and protectionism (e.g., the EU’s anti-subsidy probes) will slow BYD’s expansion. Tesla still commands ~50% of U.S. EV sales, and with legacy automakers like Ford and GM scaling back EV investments, Tesla has breathing room to adapt.

My take is that BYD’s move is less a knockout punch and more a strategic nudge for Tesla to innovate faster—or rethink its FSD monetization.

Tesla’s recent 5-day losing streak reversed after Benchmark upgraded the stock to “Buy” with a $475 price target (versus ~$330 today). The rationale? Analysts see Tesla’s AI and robotaxi ambitions as undervalued, alongside its dominance in charging infrastructure and energy storage.

While BYD’s autonomy push raises concerns, Tesla’s vertically integrated ecosystem—from Superchargers to Optimus robots—gives it leverage competitors lack. Benchmark’s upgrade reflects confidence in Tesla’s long-term playbook, not just quarterly delivery numbers.

My take for this is that the upgrade signals that smart money sees this dip as a buying opportunity for investors with a 3-5 year horizon.

Critics argue Tesla’s growth story has stalled. Model refreshes are overdue, Cybertruck margins are uncertain, and FSD adoption remains sluggish. But Tesla is far from idle:

- AI Investments: Dojo supercomputers could accelerate FSD’s capabilities, making it a must-have feature.

- Robotaxis: An August 2024 unveiling of a dedicated robotaxi could redefine mobility—and revenue streams.

- Cost Leadership: Tesla’s ability to slash production costs (e.g., gigacasting, 4680 batteries) remains unmatched.

Tesla is in a transitional phase, not a decline. The stock’s volatility reflects short-term noise, not long-term decay.

Should You Buy the Dip?

At $330, Tesla trades at ~60x forward earnings—a steep multiple, but justified if you believe in its AI and energy moats. Consider three scenarios:

1. Bull Case: Robotaxis and FSD breakthroughs reignite growth. $475+ is achievable.

2. Base Case: Steady EV dominance and energy storage growth support gradual appreciation.

3. Bear Case: BYD and Chinese rivals erode margins globally, while FSD fails to scale.

For now, BYD’s autonomy push is a speed bump, not a roadblock. Tesla’s real test is executing its AI-driven vision while defending its EV crown.

Technical Analysis

TSLA Daily Chart

Looking at the daily chart, the price action suggests that there is still room for this downtrend continuation until the price breaks above 355.40 successfully. Until then, the price may look for bottom at the next support level around 307-317.

The Bottom Line

Tesla’s stock slump reflects valid concerns, but it also overlooks the company’s unique positioning in AI, energy, and autonomy. BYD’s aggressive pricing is a threat, but Tesla’s ecosystem and innovation pipeline offer counterweights.

If you’re bullish on Musk’s ability to reinvent industries—and patient enough to weather volatility—this dip could be a compelling entry point. For skeptics, wait for clearer signals on FSD adoption and robotaxi execution.

@MillionaireTiger @Tiger_comments @Daily_Discussion @CaptainTiger @TigerSG @TigerEvents

Disclosure: This analysis is for informational purposes only and does not constitute investment advice. Conduct your own due diligence or consult a financial advisor before investing.