Tesla shares are closing near attractive entry levels for a medium term horizon. Investors could regard the decline over the past weeks as a buying opportunity.
Summary
● In view of fundamental criteria, the company is among low performers as far as mid or long-term investment strategy is concerned.
Strengths
● The share is getting closer to its long-term support in weekly data, at USD 258.78, which offers good timing for buyers.
● The close medium term support offers good timing for purchasing the stock.
● According to sales estimates from analysts polled by Thomson-Reuters, the company is among the best with regard to growth.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
Weaknesses
● Low profitability weakens the company.
● The company is in debt and has limited leeway for investment
● 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.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● For the past year, analysts have significantly revised downwards their profit estimates.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 299.1 USD
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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%).