Tesla is a ‘Tech on Wheels’ Company So There’s Room for the Stock to Move

In spite of the fact that Tesla (TSLA) is down 30% over the past week, one analyst believes it doesn’t threaten the stock’s long-term strength.

Todd Gordon, managing director of Ascent Wealth Partners, has stated that he thinks Tesla is still in the game regardless of its recent downturns, as reported by CNBC.

On CNBCs segment “Trading Nation” on Tuesday, Gordon told the host, “The main difference between how bulls and bears view Tesla is whether they value it as a traditional auto company or a technology company. If you’re trying to assign valuation on Tesla based on the conventional automobile industry, of course, the stock is going to look expensive” He continued, “We don’t see Tesla as an auto company but more as a ‘technology on wheels’ kind of company.”

Tesla’s value has been of particular debate between bulls and bears, though Gordon also said that the key to success for Tesla will be its demand within the Chinese market. Alongside competition from new EV makers Nio and Nikola, Tesla is still the only brand lineup to hit the road as of yet, so its momentum is expected to keep the company afloat, even when competing companies finally begin delivering cars.

At the time of writing, Tesla’s stock is worth $352.11, up 6.63% from yesterday.