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 (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%).