Tesla, Inc. : A support level that should be taken advantage of
Published on 05/21/2019
at 03:59 pm BST
Share
BUY
Stop-loss triggered
Entry price
Target
Stop-loss
Potential
US$200.57
US$228.9
US$193.5
+14.13%
Pursuant to the correction that has taken place in recent weeks with respect to the shares in Tesla, further downside risk now appears limited by close and important technical support levels at 197 USD.
Summary
● The company has poor fundamentals for a short-term investment strategy.
Strengths
● The share is getting closer to its long-term support in weekly data, at USD 196.65, which offers good timing for buyers.
● The close medium term support offers good timing for purchasing the stock.
● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.
● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
● Analysts covering the stock have recently lowered their earnings forecast.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● For the past year, analysts have significantly revised downwards their profit estimates.
● The underlying tendency is negative on the weekly chart below the resistance at 264.53 USD
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener UK. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.
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.
