Trading Signals - Tesla Inc (TSLA)

Gotrade Stock Analysis
Aries Yuangga

Tesla Inc. (TSLA)

Summary

Tesla is a leading electric vehicle company with a strong growth outlook. The company is facing some challenges, but it is well-positioned to benefit from the growth of the electric vehicle market. Investors should carefully consider these risks before investing in Tesla, but the company has the potential to be a long-term winner.

Strategic Trade Plan

Buy Limit set at $232. Identified as strong support.

Stop Loss (SL) at $225. Minimizing risk with a -3% decline.

Targets at $246 (6% gain), $253 (9% gain), and $268.33 (15% gain).

Ready to execute this trade?

Overview

Tesla is an American multinational electric vehicle and clean energy company headquartered in Palo Alto, California. Tesla specializes in electric vehicle manufacturing, battery energy storage from home to grid-scale, and solar panel installation. In 2023, Tesla delivered over 1.7 million vehicles. This analysis aims to dissect Tesla's financial health, market position, and stock performance through a blend of fundamental and technical lenses.

Fundamental Analysis

Financial Highlights

Revenue: $81.46 billion
Net Income: $10.79 billion
EPS: $3.41
P/E Ratio: 76.02

Tesla has shown remarkable revenue growth over the past few years, driven by increasing EV demand and expansion into new markets. The company has transitioned from a period of losses to consistent profitability, a sign of maturing operations and efficient management. Tesla's balance sheet reflects a healthy cash reserve, enabling it to fund future growth initiatives. Debt levels should be scrutinized to assess long-term sustainability.

More Stats:
https://ir.tesla.com/#quarterly-disclosure https://www.tradingview.com/symbols/NASDAQ-TSLA/

Growth Drivers

Electric Vehicle Market: The global electric vehicle market is expected to grow at a CAGR of 24.0% from 2023 to 2030.
Battery Technology: Tesla is a leader in battery technology, which gives it a competitive advantage in the electric vehicle market.
Software-Defined Vehicles: Tesla's vehicles are software-defined, which allows the company to continuously improve them through over-the-air software updates.

Valuation

Tesla is currently trading at a P/E ratio of 76.02x. The high P/E ratio reflects investors' expectations for Tesla's future growth.

Technical Analysis

Overall Trend

Tesla's stock has been on an upward trend since 2012. The stock experienced a significant decline in 2022, but it has since rebounded since early 2023.

Key Technical Indicators

Moving Averages: Currently, Tesla is trading above it’s 50-week moving average, which is a bullish indicator.
Relative Strength Index (RSI): Tesla's RSI is currently at 54.02, which is in the neutral territory.
Support and Resistance: Tesla's stock has support at $200 and resistance at $300.

Short-Term Outlook

Tesla's stock is currently in a consolidation phase. However, the RSI suggests that the stock may be due for a breakout in either direction. The stock could break out of its consolidation phase and move to new highs if the overall market conditions improve. Alternatively, the stock could break down and move to new lows if the market declining below $200 support level.

Long-Term Outlook

Tesla is well-positioned to benefit from the growth of the electric vehicle market. The company is a leader in battery technology and software-defined vehicles, which gives it a competitive advantage. As a result, Tesla's stock has the potential to continue to grow in the long term. If Tesla successfully breakout its current resistance at $300, ATH at $415 is its next resistance target.

Recent News

November 15, 2023: Tesla delivers first Cybertrucks to customers

November 22, 2023: Tesla raises $5 billion in new stock offering

November 28, 2023: Tesla expands Model Y production to Mexico

Analyst Recommendations

TSLA currently trading above its previous weekly high and 50-week moving average which indicates a bullish momentum continuation, TSLA could continue up for the next few weeks to its next resistance at $300 or 22% target from its current level.

Investment Risks

Competition: Tesla faces increasing competition from other automakers, such as General Motors, Ford, and Volkswagen.
Production Challenges: Tesla has a history of production challenges, which could impact its ability to meet demand.
Regulatory Risks: Tesla faces regulatory risks, such as changes to government subsidies for electric vehicles.

Conclusion