Tesla Stock vs The Lithium Volcano: Investors to Come Out on Top?

Written By Mike Munno

Updated May 15, 2024

Thinking about buying Tesla stock? You’ll want to read this first. The start of the year has not been kind to Elon Musk or Tesla stockholders. Many investors are wondering if now is the time to load up on Tesla stock. Before you make any decisions, make sure you know all the facts.

Tesla, the electric vehicle (EV) pioneer, has captivated investors and the automotive industry for years. However, 2024 has not been kind to the company’s stock, raising concerns about its future trajectory.

Tesla Stock

Missed Earnings and Slowing Growth for Tesla Stock

Tesla’s Q4 2023 earnings report painted a disappointing picture. The company missed Wall Street’s revenue and earnings forecasts, sending shockwaves through the market. Automotive revenue growth sputtered at just 1% year-over-year, a stark contrast to its previous blistering pace.

This sluggish performance translated to a rough start for Tesla stock. The share price plummeted 12.1% after the earnings release. And it’s only gotten worse. Right now, Tesla stock is down ~23% year-to-date. Analysts expressed mixed opinions, with some attributing the slowdown to a temporary lull between major product cycles and others raising concerns about lower margins and increased competition.

Tesla Stock Chart YTD 2024

There was also a re-hashing of the story about a Tesla Bot attacking a Texas Gigafactory worker in 2022. While the incident is two years old, it doesn’t help Tesla’s stock when the media reminds people.

Tesla Stock & Elon Musk Factor: Still a Guiding Light or a Distraction?

Elon Musk, the ever-outspoken CEO of Tesla (among other companies), continues to cast a long shadow over the company. While his visionary leadership and technological prowess have been instrumental in Tesla’s success, his multitasking across ventures like Neuralink and SpaceX has raised questions about his focus. 

Moreover, Elon’s increased activity on X (formerly Twitter) has raised concerns from investors and former Tesla fanboys alike. Some investors worry that these distractions could hinder Tesla’s ability to navigate the increasingly competitive EV landscape.

Not to mention the lithium supply issue, but more on that later. 

However, Musk’s influence on Tesla stock remains undeniable. His statements and actions can still trigger significant swings in the share price. Some investors view this as an advantage. Some view it as a reason to stay the heck away. I can’t tell you which one you are, only you can do that. 

A Lull Before the Storm for Tesla Stock?

Despite the recent stumbles, Tesla maintains several strengths that could fuel a future rebound. The company is the undisputed leader in the EV market for a reason. They boast a loyal customer base and a robust brand reputation. Additionally, Tesla’s commitment to innovation remains unwavering, with its research and development pipeline brimming with promising technologies.

Furthermore, the company expects to launch its next-generation vehicle in late 2025. This would almost certainly reignite growth and investor enthusiasm. If Tesla successfully executes this product launch and overcomes production bottlenecks, a significant stock price recovery is within reach.

But the facts remain…

Tesla’s path to regain its previous momentum is far from smooth. Traditional automakers are pouring resources into EV development, while upstart competitors like Rivian (NASDAQ: RIVN) and Lucid (NASDAQ: LCID) are chipping away at Tesla’s market share. 

Lucid and Rivian catching up to Tesla Stock?

Additionally, rising interest rates and economic uncertainty could dampen consumer demand for EVs, further hindering Tesla’s growth prospects. There is also the issue that Tesla’s rely on lithium batteries, and we’re on the brink of a lithium storm. 

Tesla Stock Holders Stuck in a Lithium Storm

We’re at a decisive moment in history right now.

One that could create an amount of wealth comparable to those who traded Tesla stock from 2012 to the end of 2021. Maybe even more… 

Tesla Stock Gains 2012-2021

You see, lithium has been named the “most important element of the 21st century,” and for good reason. Everything from personal electronics, to cars, to trains, to aircraft requires lithium. 

It’s quite literally the oil of the future. The issue? There isn’t enough. Plain and simple. 

The United States contributes 1% to the global lithium production. There’s only one operating lithium mine in the whole country. So where has the U.S. been getting their lithium from? China. That is, until now…

A Geologist from Oregon State University just exposed a groundbreaking lithium discovery right here in America. It’s a world record-breaking lithium deposit worth a staggering $1.5 TRILLION. It dwarfs any other lithium deposit known to exist on Earth. 

Geological results have scientists predicting up to 120 megatons of lithium at this remote site. To put that number into context, the next largest known lithium deposit in the world, located in Bolivia, holds just 10.2 megatons of lithium. That makes this deposit 10 times the size of the next largest lithium deposit in the world. Alex Koyfman recently discovered the company and just finished putting together his notes about the company. He was telling me about them the other day at the office and it sounds extremely promising. 

And the best part? The stock trading behind the discovery is still trading for dirt cheap (like Tesla was in 2012). In fact, shares are trading for around $5 right now. 

Tesla Stock: A Buy, Sell, or Hold?

The recent slump in Tesla stock presents a dilemma for investors. For the risk-averse, selling and exiting the market might seem like the prudent option. However, for those with a longer-term perspective, this downturn could be a buying opportunity. 

Tesla’s core strengths, coupled with its potential future catalysts, suggest that the company could emerge even stronger from this temporary setback. Ultimately, the decision of whether to buy, sell, or hold Tesla stock rests on individual risk tolerance and investment goals.

Tesla’s story is far from over. The coming months and years will be crucial in determining whether the company can overcome its current challenges and regain its place as a market leader. For investors, staying tuned and making informed decisions will be key to navigating the twists and turns of Tesla’s ever-evolving journey.

If you’re looking for explosive growth, you might want to consider the “Lithium Volcano” stock over Tesla. I’m not saying Tesla doesn’t have any more room to run, but the life-changing gains have already been made. 

It all comes down to whether you’re in it for the long haul or if you’re trying to make a quick buck. 

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