Tesla reported its second quarter earnings that surpassed analyst’ expectations.
The electric carmaker’s earnings for the quarter came in at $2.18 (ex-items) per share, well ahead of than 3 cents a share expected by analysts (based on Refinitiv data). The EPS marks a turnaround from the year-ago quarter’s adjusted loss of $1.12 a share.
Revenue of $6.04 billion fell -5% year-over-year, but beat estimates of $5.37 billion.
“Demand is not our problem,” Chief Executive Elon Musk told analysts on a conference call after the results. Most of the challenges, including some parts shortages, are related to supply-chain and production issues, he said. “Don’t worry about demand, that’s not the issue.”
Automotive revenue declined by 4% year-over-year for Tesla from $5.38 billion to $5.18 billion.
“We have the capacity installed to exceed 500,000 vehicle deliveries this year, despite recent production interruptions. While achieving this goal has become more difficult, delivering half a million vehicles in 2020 remains our target,” Tesla said in a letter.
According to Tickeron, TSLA's Aroon indicator reaches into Uptrend on July 22, 2020
For traders, this could mean going long on the ticker or exploring call options in the next month. In 223 of 281 cases where TSLA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 79%.
Current price $1490.37 is above $882.96 the highest support line found by A.I. Throughout the month of 06/19/20 - 07/22/20, the price experienced a +59% Uptrend. During the week of 07/15/20 - 07/22/20, the stock enjoyed a +3% Uptrend growth.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator exceeded the 0 level on June 25, 2020. Traders may consider buying the ticker or exploring call options. In 45 of 66 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 68%.
The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where TSLA's MACD histogram became positive, in 30 of 42 cases, the price rose further within the following month. The odds of a continued Uptrend are 71%.
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 15 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Indicator may be shifting from an Uptrend to a Downtrend. In 42 of 62 cases where TSLA's Stochastic indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 68%.
The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 29 of 43 cases where TSLA's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 67%.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 57%. During the last month, the daily ratio of advancing to declining volumes was 2.03 to 1.
The Tickeron Profit vs. Risk Rating rating for this company is 7 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 34 (best 1 - 100 worst), indicating steady price growth. TSLA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: TSLA's P/B Ratio (60.05) is very high in comparison to the industry average of (12.32). P/E Ratio (0.00) is within average values for comparable stocks, (110.24). TSLA's Projected Growth (PEG Ratio) (0.00) is slightly lower than the industry average of (1.05). Dividend Yield (0.00) settles around the average of (1.88) among similar stocks. P/S Ratio (4.01) is also within normal values, averaging (6.73).
The Tickeron SMR rating for this company is 97 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 100 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.