The resistance zone around 901 USD on the weekly chart shuold rein in spikes to the upside. The timing to get ahead of the start of a correction in shares of Tesla, Inc. seems very opportune.
Summary
● The company has poor 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.
● The stock is in a well-established, long-term rising trend above the technical support level at 379.81 USD
Weaknesses
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● The stock is close to a major daily resistance at USD 917.42, which should be gotten rid of so as to gain new appreciation potential.
● 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.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 3988.96 times its estimated earnings per share for the ongoing year.
● 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 past seven days, analysts have been lowering their EPS expectations for the company.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
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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%).