Is Tesla Stock a Buy Under $500?

Tesla (TSLA) stock is closing in on the $500 mark. The recent rally was sparked by a reported Waymo outage, which left many of the company’s autonomous vehicles stranded on the streets. This brought back attention to Elon Musk’s full self-driving and autonomy. With the stock struggling to break the $500 barrier in the last week’s trading, investors have started wondering whether it is a psychological resistance and therefore worth selling the stock in the short term.

The arguments for buying or selling the stock are both valid. Tesla’s valuation is so high that it almost doesn’t make any sense. Yet the company is developing technology that could significantly alter the way we pursue work and live our lives. It comes down to whether someone is investing in the short term or for the long run. The $500 level is behaving like a profit-taking level, so the bearish case remains strong. If one can ignore this short-term investor behavior, the same level could very well be a stepping stone to a multi-trillion-dollar valuation.