Tesla Stock Roars Higher: Could This Sharp Rebound Continue?
The electric car maker's shares are bouncing back in a big way -- but there's a good reason to stay skeptical.
After a rough start to the year, Tesla (NASDAQ: TSLA) stock is suddenly bouncing back. As of this writing, the growth stock has risen more than 20% from lows last week. The big rise comes as investors hunt for bargains in some of the market's hardest-hit names. But while the rebound may feel encouraging, it's not clear that it reflects a change in Tesla's underlying business trends.
Tuning out the stock's noisy volatility, let's look at the underlying fundamentals to see if this is really a dip worth buying.
The electric car maker's most recent earnings report, released in late January, painted a picture of a business facing significant headwinds. Revenue for the fourth quarter came in at $25.7 billion, up just 2% from year over year. A high interest rate environment has made vehicle affordability difficult, and Tesla hasn't escaped this challenge.
