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Tesla Stock Reversal: From Weakest Giant to Rebound Focus

Tesla Stock Reversal: From Weakest Giant to Rebound Focus

Forum Center / Combined Report Recently, Tesla's stock price has shown a dramatic reversal, where the market initially expected a long-term slump, but unexpectedly a strong rebound occurred within days. Stock market expert Lin Youming analyzed on the 'Finance Weekend Party' that the impact of Trump’s policy led to an instantaneous evaporation of approximately $3 billion in Tesla's market value, yet this shock unexpectedly cleaned up the chips and paved the way for the subsequent rebound.

Tesla may transform from the weakest stock among the seven giants in the U.S. stock market to an important representative of the rebound. Experts point out that the market's expectations for Musk have significantly decreased, as investor confidence has dropped to a low point since he took on the role of government efficiency head. Despite Tesla's recent poor financial results, as long as the outcomes are 'better than expected,' it can still receive positive evaluations.

Though the second-quarter report showed disappointing revenue, profits, and free cash flow, it exceeded market expectations, supporting the stock price. Notably, Musk seems to be focusing on operating the company now, and the potential for growth in the areas of energy storage, carbon credits, robotics, and Robotaxi is rekindling market expectations.

From a technical perspective, Tesla has had the weakest performance among the seven giants in the U.S. stock market this year, but this aligns with the current market trend where the weakest stocks are showing signs of reversal. Experts predict that while Tesla's stock price has not yet returned to an ideal level, the trend of rebound has been established, and investors should closely monitor future developments.