Should You Forget Tesla Stock Near a 52-Week Low?

Axe Cap view

Tesla at 52-Week Low: Avoid or Opportunity?

Tesla’s share bounce looks more like a SpaceX spillover than a sign of improving fundamentals.

Tesla’s recent earnings paint a tough near-term picture. Revenue grew 26%, but operating income collapsed 57%, pushing margins to a wafer-thin 1.4%. The stock’s bounce from a 52-week low owes more to SpaceX’s recent success than Tesla’s own business. For South African investors, the link here is indirect—Tesla’s struggles highlight risks for tech-heavy exposure via Prosus or Naspers, given their stakes in global tech. On the currency front, any risk-off move could keep the rand volatile against the dollar, especially if US markets wobble further. Tesla’s long-term bets on AI and autonomy remain headline-grabbing but aren’t translating into profits anytime soon. Unless you’re a true believer in transformative tech, this feels like a ‘watch’ scenario, not a ‘buy’. The view might be wrong if Tesla quickly starts showing margin recovery or if broader tech sentiment improves dramatically, lifting local tech proxies. this is just our opinion and not financial advice