Tesla Inc. shares have recently benefitted from renewed interest and are reverting to attractive levels at which sales could be contemplated.
Summary
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock
● For the past twelve months, EPS forecast has been revised upwards.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 329.94 USD
Weaknesses
● The company sustains low margins.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● With an enterprise value anticipated at 3.81 times the sales for the current fiscal year, the company turns out to be overvalued.
● With an expected P/E ratio at 167.06 and 62.59 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
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Tesla, Inc. designs, builds, and sells electric vehicles. Net sales break down by activity as follows:
- sale of automotive vehicles (81.1%);
- services (8.6%): 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 (6.2%);
- automotive leasing (2.2%);
- automotive credits (1.9%).
At the end of 2023, the group had 7 manufacturing sites located in the United States (5), China and Germany.
Net sales are distributed geographically as follows: the United States (46.7%), China (22.5%) and other (30.8%).