Here, we focus on identifying stocks that have experienced (and perhaps will soon) a 10% price pullback from recent highs, presenting potential buying opportunities. This 10% pullback strategy is based purely on technical analysis, especially price action, without delving into the underlying fundamentals of the companies. We aim to uncover stocks that are showing signs of recovery or consolidation, offering traders a chance to enter at a potentially discounted price. Please refer How to Choose Stocks for the 10% Pullback Strategy to choose stocks that are safer for using the 10% pullback strategy, ensuring that you’re buying into companies with solid fundamentals and long-term growth prospects.
Weekly Analysis
*Updated: 15 Mar, 2025
Buy Stock During Market Correction
| TSLA | Stock Price | Remarks |
|---|---|---|
| Recent High | 488.54 | 18 Dec, 2024 |
| 10% | 439.68 | 1/3 of capital, set TP: 457.51 |
| 20% | 390.83 | 1/3 of capital, set TP: 439.68 |
| 30% | 341.97 | 1/3 of capital, set TP: 390.83 |
| 40% | 293.12 | set TP: 341.97 |
| Target Price | 457.51 | sell remaining stocks |
| Support 1 | 299.29 | |
| Support 2 | 203.20 | strong |
Why Buy Tesla (TSLA) Stock
Investing in Tesla for the long term can be appealing for several reasons. Here’s a list of 10 key factors that make Tesla an interesting long-term investment:
1. Dominance in Electric Vehicles (EVs)
Tesla is a leader in the electric vehicle market. As governments and consumers shift toward sustainable energy solutions, Tesla’s head start in EV production positions it well for future growth. The company’s growing market share and innovation make it a strong contender as the world moves away from fossil fuels.
2. Expansion of Energy Products
Tesla isn’t just an automaker. The company is investing heavily in energy storage solutions like Powerwall and Powerpack, as well as solar products. These technologies are expected to grow as renewable energy adoption accelerates, providing Tesla with multiple revenue streams beyond cars.
3. Strong Brand and Customer Loyalty
Tesla has built one of the most recognizable and trusted brands in the world. Its customers tend to be extremely loyal and enthusiastic, which translates into repeat sales, word-of-mouth marketing, and brand power.
4. Self-Driving Technology and AI
Tesla’s advancements in autonomous driving are setting the stage for a future where self-driving cars could become the norm. The company is investing heavily in AI and machine learning for its vehicles, and its vast fleet of data-gathering cars gives it a unique edge in perfecting the technology.
5. Gigafactories and Scaling Production
Tesla has established massive Gigafactories worldwide, including in the U.S., China, and Europe. These factories not only scale the production of electric vehicles but also produce energy storage systems and batteries. As Tesla ramps up production, its economies of scale could help lower costs and drive higher margins.
6. Sustainability and Green Energy Trends
Tesla is at the forefront of the shift to clean, sustainable energy. As the global emphasis on reducing carbon emissions grows, Tesla is well-positioned to benefit from increased demand for its electric vehicles, solar solutions, and battery storage systems. Climate change concerns will likely drive more consumers and governments toward Tesla’s products.
7. Tesla’s Technological Innovations
From battery technology to its over-the-air software updates, Tesla is a continuous innovator. The company has made significant strides in making electric vehicles more efficient, more affordable, and more appealing to consumers. This culture of innovation suggests that Tesla will remain a key player in the tech-driven future of transportation and energy.
8. Potential for Future Profitability
Tesla has historically faced criticism for not being profitable, but it’s now regularly posting profits. With growing demand, lower production costs, and increasing global market penetration, Tesla’s ability to generate consistent profits in the long term looks promising.
9. Elon Musk’s Vision and Leadership
Elon Musk is an iconic entrepreneur with a track record of revolutionizing industries (SpaceX, PayPal). His ambitious vision for Tesla includes not only leading in electric cars but also in energy, autonomous driving, and possibly even Mars colonization. Investors often bet on Musk’s ability to execute bold plans, and his leadership is key to Tesla’s potential for success.
10. Global Expansion and Market Share
Tesla’s vehicles are not just popular in North America—they have also found significant demand in Europe and China, two of the largest auto markets. Tesla’s ability to expand production and sales globally means that it can tap into diverse markets and adjust to regional demands, which bodes well for its growth trajectory.
These reasons combine to make Tesla an attractive long-term investment for those who believe in the future of clean energy and technological disruption. However, like any stock, there are risks, so it’s important to do your research and consider your personal risk tolerance.