Anyone with even a slight interest in the US stock market will probably know that Tesla (NASDAQ: TSLA) stock has had an awful month. As I type this Friday lunchtime (31 July), we’re talking about a fall of over 25%. <\/p>\n
So, is this a wonderful opportunity to climb on board, or are more (big) drops likely? <\/p>\n
For a bit of fun, I decided to ask ChatGPT. Its response was ‘interesting’, to say the least. <\/p>\n
Where next for Tesla stock? <\/p>\n
Once prompted, the AI bot spat out the following predictions: <\/p>\n
Further decline of 10%\u201320% over the next 3\u20136 months: chance about 45% <\/p>\n
Share price roughly flat: about 30% <\/p>\n
Strong rebound to new highs: about 25% <\/p>\n
The suggestion that the chance of another sizeable fall was pretty much a coin flip wasn’t exactly enlightening. What’s more, there was no indication of how these various probabilities were arrived at. <\/p>\n
But this is to mistake ChatGPT as an AI crystal ball. The fact is, the bot can only summarise what’s already out there. It can’t predict anything with any more certainty than we can. <\/p>\n
This applies to all shares, of course. But it’s particularly relevant for Tesla because it continues to divide analysts and investors. <\/p>\n
So, what CAN we say? <\/p>\n
Now, Tesla’s recent tumble isn’t anything new. While the long-term performance has been incredible (and justified based on the technology it’s produced), there have been periods of significant volatility along the way. <\/p>\n
Whether this latest drop turns into something worse will depend on Elon Musk’s ability to demonstrate that the recent earnings miss (which precipitated the fall) has been taken out of proportion. <\/p>\n
The next update on trading could be positively received if there were evidence that automotive margins are now stabilising and that free cash flow has turned positive again. Clearly, the massive investment in data centres, Robotaxis and Optimus robots will have a huge bearing on how the stock performs as well. We already have evidence that investors are getting increasingly skittish on this front. <\/p>\n
And Tesla’s CEO isn’t exactly known for hitting deadlines. <\/p>\n
Outside forces <\/p>\n
Anything suggesting that the above isn’t happening and Tesla’s value may continue to fall. But we also need to be alert to the possibility that there could be some contagion from the movement of SpaceX (NASDAQ: SPCX) shares. They’ve performed even worse in July and many early holders will now be nursing heavy paper losses. <\/p>\n
And this is before we’ve even considered what happens to the US market if the conflict with Iran worsens. <\/p>\n
Here’s where I’m at <\/p>\n
To be clear, I would never rely solely on ChatGPT (or any other AI tool) to select stocks. This is especially true when it chucks out probabilities with no explanation of how it arrived at them. <\/p>\n
For my part, I continue to have exposure across several portfolios, albeit via my holdings in global exchange-traded funds. This ‘safety in numbers’ approach means I won’t panic if the company continues to lose value. The downside is that any revival also won’t move the dial. <\/p>\n
A sustained crash in which it absolutely craters in value, however, will certainly get me interested in owning Tesla stock directly. <\/p>\n
Should you invest \u00a35,000 in Tesla right now? <\/p>\n
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. <\/p>\n
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Tesla made the list? <\/p>\n
\u00a0See The Six Stocks <\/p>\n
Paul Summers has no position in any of the shares mentioned <\/p>\n
The post I asked ChatGPT if Tesla stock will crash again. It said\u2026<\/a> appeared first on The Twelfth Magpie<\/a>. <\/p>\n More reading <\/p>\n The Twelfth Magpie 2026 <\/p>\n","protected":false},"excerpt":{"rendered":"Anyone with even a slight interest in the US stock market will probably know that Tesla (NASDAQ: TSLA)…\n","protected":false},"author":2,"featured_media":126041,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[580,157,591,2616,1677],"class_list":["post-126040","post","type-post","status-publish","format-standard","has-post-thumbnail","category-openai","tag-chatgpt","tag-openai","tag-stock-market","tag-tesla","tag-tesla-stock"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/126040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=126040"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/126040\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/126041"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=126040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=126040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=126040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}