Tesla, Inc. : A sell-off that can be taken advantage of
Published on 03/17/2020
at 01:21 pm GMT
Share
BUY
Repli_rebond
Target price hit
Entry price
Target
Stop-loss
Potential
US$362
US$590
US$277
+62.98%
Pursuant to the recently observed sell-off, the timing for long positions in Tesla, Inc. to anticipate a technical rebound, at the very least, appears attractive.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The share is getting closer to its long-term support in weekly data, at USD 352.17, which offers good timing for buyers.
● The prospective high growth for the next fiscal years is among the main assets of the company
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 352.17 USD
Weaknesses
● The company does not generate enough profits, which is an alarming weak point.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● With an expected P/E ratio at 118.97 and 41.91 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
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Tesla, Inc. designs, builds, and sells electric vehicles. Net sales break down by activity as follows:
- sale of automotive vehicles (74.2%);
- services (10.8%): primarily maintenance and repair services. The group also develops sale of power train assembly components for electric vehicles activity;
- sale of energy generation and storage systems (10.3%);
- automotive credits (2.8%);
- automotive leasing (1.9%).
At the end of 2024, the group had 8 manufacturing sites located in the United States (5), China (2) and Germany.
Net sales are distributed geographically as follows: the United States (48.9%), China (21.4%) and other (29.7%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
