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 250.56 USD.
Summary
● The company usually posts poor financials for mid or long term investments.
● The company has poor fundamentals for a short-term investment strategy.
Strengths
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● Low profitability weakens the company.
● The group shows a rather high level of debt in proportion to its EBITDA.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The company's earnings releases usually do not meet expectations.
● 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 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%).