Rep. Marjorie Taylor Greene has bought several stocks this month, and her Tesla (TSLA) buy is capturing investor attention.
Considering TSLA stock has is down nearly 50% from its peak, a buy from a member of Congress may be a sign that it could be approaching a bottom. Plus, Greene heads the House of Representatives committee responsive for overseeing Elon Musk’s work with the Department of Government Efficiency. More recently, she has urged the Department of Justice to probe anti-Tesla protests.
Greene has accumulated Tesla shares since late 2024 through multiple transactions. Let’s take a look at her most recent purchase.
Marjorie Taylor Greene Buys the Dip on Tesla
Majorie Taylor Greene reported that she purchased between $1,001 and $15,000 of TSLA stock on March 7. This purchase was before President Donald Trump met with Elon Musk at the White House on March 11. There, Trump purchased a new Tesla vehicle in a sign of support.
Trump also pledged to pursue prosecution for people who vandalize Teslas, labeling it as “domestic terrorism.”
Is TSLA Stock Undervalued Now?
Despite falling 50% from its 52-week high, Tesla stock is still not undervalued. It is trading at 121x trailing earnings and nearly 98 times forward earnings.
The electric vehicle company saw its 2024 sales drop annually for the first time ever, and it is facing rising challenges in China, parts of Europe, Australia, and New Zealand. U.S. sales are also down with an 11% trop in registrations in January.
One may argue that since Wall Street has historically paid more for the stock, it could be worth buying the dip now. However, you also need to keep in mind that the recent decline is more of a reversion to the mean instead of a full-on decline.
TSLA stock is still hovering above the average price it had leading up to Trump’s reelection. As the optimism cools about Trump and Musk, the stock has done the same. It doesn’t help that many investors see Elon as an absentee CEO now, especially after his interview, in which he seemed frustrated and said he was running his companies with “great difficulty” after taking on DOGE responsibilities.
Should You Buy TSLA Stock Because of MTG?
Marjorie Taylor Greene’s purchase of TSLA is inconsequential in the grand scheme. Her purchase amount pales compared to her estimated net worth up to the tens of millions.
My theory is that she likely bought Tesla stock in a show of support for Trump and Musk, who she has aligned with. That catalyst of their White House meeting is behind us and has failed to reignite a rally in TSLA stock.
Buying TSLA due to MTG’s conviction alone isn’t a good idea.
The mean analyst price target of $347.89 implies a nearly 45% upside from here, but most analysts are not confident. Out of 40 analysts, only 17 have “Buy” ratings on the stock.
As such, TSLA is not yet a “Buy.”
