Tesla stock has been, using Fed’s vocabulary, on an “unsustainable path” lately. Since this year began, shares are down a whopping 23%, but about 9% of the decline came after January 24th when management announced some financial data for Q4 2023 fiscal year.

But digging deep, it’s really hard to find a fundamental ground under this rockiness. Yes, Tesla recently recalled 2.19M of its vehicles over the issue of some warning lights on the instrument panel are too small — so what? Recalling defective merchandise isn’t something damaging or disgraceful, and it did so many times in its history. Contrary, recalls show a company adheres to high quality standards, and after fixing the problem, the vehicles will come back to market. Some commentators try to present this story as if Tesla has lost over 2 million vehicles forever, which is not true, of course.

The 2023 sales target was reached, and although Tesla introduces some price cuts to stir up its market, it doesn’t mean the car is becoming unpopular. The company has hit 1.85 million units produced for the last year and 1.81 million vehicles delivered. Management's forecast when results for 2022 were reported called for about 1.8 million units for 2023.

The true reason behind Tesla’s continuing downfall may lie in the memorable Elon Musk’s comments about freedom of choice for corporate advertisers in his X platform, but it has nothing to do with the fundamentals of Tesla. Tesla's fundamental data shows encouraging revenue and profit growth, positive cash flow, and a healthy balance sheet.