One of several Wells Fargo top trading ideas for the fourth quarter of 2024 is shorting Elon Musk's electric vehicle company, Tesla . So far in October, markets are rebounding after a sluggish start to the month, with investors attentive to rising tensions in the Middle East as well as the U.S.
Presidential election on Nov. 5. On Wednesday, stocks have edged higher , with the S & P 500 climbing to a fresh intraday record, led by advances in technology stocks, including Amazon and Super Micro Computer .
One of Wells Fargo's top recommendations is to short Tesla , betting that the stock will fall. Analyst Colin Langan's $120 per share price target equates to more than 50% downside from Tuesday's $244.50 close.
"We see moderating delivery growth driven by lower demand & diminished return on price cuts," Langan said. TSLA YTD mountain Tesla in 2024. The analyst also expects Tesla's auto gross margin, excluding credits, to pull back by 400 basis points year-over-year as the company continues to cut prices and offer financing promotions.
"Moreover, we are concerned about Model 2 demand & margins post 2025," Langan added. "We remain cautious on valuation vs Mag 7 and see risk to AI strategy." Looking ahead to the end of the year, here are some of Wells Fargo's other tactical trading ideas for the rest of the fourth quarter: One of them is casino operator Las Vegas Sands , whose shares have ticked up roughly 5% in 2024, bady trailing the broader market.
Wells Fargo analyst Dan Politz.
