Yahoo Finance

Tesla stock: Should investors buy the dip on the EV leader?

As investors look to balance portfolios for 2024, some turn towards the auto industry and one of the Magnificent Seven components, Tesla (TSLA). The EV maker has been met with a variety of challenges ranging from leadership, strikes, and recent recalls, but is the stock at a good value to buy in or are there other potential plays investors should be adding over Tesla? Gabelli Funds Portfolio Manager Brian Sponheimer joins Yahoo Finance Live alongside Senior Autos Reporter Pras Subramanian to discuss where investors should keep an eye out in the auto industry to boost their portfolios. Sponheimer gives advice to investors on what they should consider when weighing their options with investing in Tesla: "You're talking about a company that you really need to have confidence that there's a piece of the Tesla story that goes well beyond traditional auto-making. The stock is going to earn somewhere between $3.00 [or] $3.50 or $4.00 for this coming year. And if you're thinking about a stock trading just below $200, what are you going to be paying 45 or 50 times earnings for?" For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino