• Tesla managed to shatter analysts’ forecasts for the third quarter and since then, the stock has been on a wave of gains in parallel with its entry into the SP500 index.
Tesla shares are at an all-time high and the question is whether. Is it really worth the price?
• The short positions that have not been successful so far have returned to the headlines and are gaining momentum.
• Technically the stock is in the coming week in a strong positive trend.
The technical angle for the coming week
|
Company name / securities |
Ticker |
price |
recommendation |
support |
resistance |
|
Tesla |
TSLA |
860.49 |
Strong buying |
769.97 |
937.27 |
Technically the stock is in the next week on a strong positive trend with most indicators supporting the price increase and giving a Buy rating. The momentum indicator for the stock is also .Buy
Company description
Tesla is a company that manufactures vehicles based on electric propulsion and develops clean energy technologies. Tesla’s name was given to her as a tribute to the inventor Nicola Tesla.
In the early 2000s a race began to produce a commercial version of the prototype of an electric car introduced by an American company called AC Propulsion Two teams worked on the prototype project. One group at a time led by the groundbreaking entrepreneur and successful businessman Elon Musk And another group led Martin Eberhard. Following an offer by the president of AC that the two groups would cooperate, Tesla Motors was established in 2003 when Mesek served as chairman and chief designer and Eberhard served as CEO.
Musk served as a major primary investor with an investment of $ 7.5 million and an additional $ 13 million raising. In 2005 in collaboration with the British Lotus Group, which created for Tesla most of the components of the first car model, with the exception of engine components exclusively, Tesla introduced a model called the Roadster and was its first sports car.
The sports car on display was the first to be designed for use with lithium-ion batteries that provided a driving range of about 329 kilometers per charge with sporty performance and acceleration from 0 to 100 km / h in 3.7 seconds. In 2008, Tesla was issued by NASDAQ and today the company is traded at a market value of $ 0.81 trillion with a historical profit multiplier of about 1,600.
According to the CEO, the company sees value in promoting the issue of electric vehicles in general. In June 2014, Elon Musk announced in a surprising move that the company approves “anyone who wants” in the world, to use its patents and the company undertakes not to sue anyone who uses its patents. Unrecognized that has never been performed by a commercial corporation, for profit, of this magnitude.
According to Mask, the move is intended to promote the transition to electric vehicles around the world – a move that should reduce the amount of pollutants in the air, reduce greenhouse gas emissions, reduce dependence on fossil fuels (fossil fuels) and political dependence on countries with large oil deposits.
Financial results
Tesla posted revenue of $ 8.7 billion for the third quarter of the year and in the net profit line, it posted $ 300 million earnings with adjusted earnings per share of 76 cents per share. Earnings were expected to be $ 8.3 billion this quarter and earnings per share at 56 cents a share. Shortly before the reports were published, the company reported that it delivered 139,300 vehicles in the last quarter, a 40% increase over the same quarter last year.
In addition to the increase in sales, the profit was also due in part to the sale of credit points for non-emission of polluting gases to manufacturers of gasoline cars. The profit was recorded despite a temporary closure of Tesla’s operations at its main plant in Fremont, Silicon Valley. Local authorities have ordered the closure of most businesses to stem the eruption of the corona. Musk quarreled with the authorities and reopened the plant.
Tesla has a fast ratio of 1.32 and is trading as a significant growth stock. The company’s total cash jumped from $ 8.62 billion in the previous quarter to $ 14.53 billion in the third quarter.
What does the future hold for the company?
Opinions are currently divided over Tesla. On the one hand, Tesla is raising its target prices and on the other hand, short positions are growing against the company’s shares. Despite the advanced technology that Tesla has built and accumulated over the years, in the end everything has a price, and the question is whether it is indeed the right price or not?
Among the major shortlisters is Dr. Michael Berry, who unlike other investors, who have made predictions around one stock or another, has very strong legitimacy after entering a short position in the mid-2000s against an entire sector. The alliance and that it will explode. After anticipating the subprime crisis, his investment fund earned $ 750 million, in addition to about $ 100 million in fragments there in his own pocket.
Berry’s story even resonated until Hollywood produced a movie called “The Money Machine” or in free translation “The Big Short”. His character in the movie “The Money Machine” was played by actor Christian Bale and to this day he uses a photo from the movie on his Twitter account.
Despite the positive sentiment that investors have around Tesla, investor Michael Berry believes that the future of Tesla shares is in the dark. In a tweet in which he admitted to taking a short position last month, Berry recommended that Tesla CEO Alon Musk, who was crowned the richest man in the world this weekend, sell the company’s shares as long as they are in what he calls a “ridiculous price level.”
Berry tweeted on his Twitter account (which has since been taken off the air): “Well, my last big short also went and grew, and grew, and grew. The jump in Tesla’s market value today (Friday) alone is $ 60 billion, equivalent to the value of General Motors (GM) twice the value of Hershey, three times that of Etsy, four times that of Dominos, and 10 times that of Vernado… Enjoy it all It continues. “
If so, keep in mind that the billions of dollars invested in a short position over the past year have gone down the drain because the company’s stock just hasn’t stopped soaring. On the contrary, just this month, Tesla shares added to its value, after closing 2020 by no less than 740%, amid profitable quarters and joining the S&P 500 last month.
Financial and financial data
