On Friday, Tesla shares plunged more than -20% from their record high Monday, as investors continued to realize profits on the stock’s skyrocketing climb this year.
The electric carmaker’s stock is up +355% year to date and +748% over the past 12 months. Alongwith several investors probably trying to take the profits, another factor behind Friday’s decline was Friday the two-day dive by the entire technology sector.
Also, on Wednesday, investment firm Baillie Gifford, the largest institutional investor in Tesla, announced it had reduced its stake to below 5% in line with its portfolio guidelines. According to a Securities and Exchange Commission filing, the U.K.-based investment group now owns less than 5% of Tesla, down from 6.32% (according to data from FactSet).
Tickeron's analysis showed that TSLA in -14.33% Downtrend, sliding for three consecutive days on September 03, 2020
As a Bearish sign, keep an eye on this company's ticker for future decline. Considering data from situations where TSLA declined for three days, in 188 of 272 cases, the price rose further within the following month. The odds of a continued Downtrend are 69%.
Current price $404.75 is above $299.82 the highest support line found by A.I. Throughout the month of 08/04/20 - 09/03/20, the price experienced a +37% Uptrend, while the week of 08/27/20 - 09/03/20 shows a -9% Downtrend.
Technical Analysis (Indicators)
Bearish Trend Analysis
The RSI Indicator appears to be shifting from an Uptrend to a Downtrend. In 26 of 41 cases where TSLA's RSI indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 63%.
The Stochastic Indicator may be shifting from an Uptrend to a Downtrend. In 44 of 64 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 69%.
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 45 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 64%.
Bullish Trend Analysis
The Momentum Indicator exceeded the 0 level on August 12, 2020. Traders may consider buying the ticker or exploring call options. In 48 of 65 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 74%.
The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where TSLA's MACD histogram became positive, in 32 of 44 cases, the price rose further within the following month. The odds of a continued Uptrend are 73%.
Fundamental Analysis (Ratings)
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 65%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.27.
The Tickeron Valuation Rating of 99 (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 (38.41) is slightly higher than the industry average of (-1.12). TSLA's P/E Ratio (1059.07) is considerably higher than the industry average of (198.05). TSLA's Projected Growth (PEG Ratio) (3.64) is slightly higher than the industry average of (1.40). Dividend Yield (0.00) settles around the average of (1.88) among similar stocks. P/S Ratio (8.69) is also within normal values, averaging (35635.43).
The Tickeron SMR rating for this company is 88 (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 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 Profit vs. Risk Rating rating for this company is 4 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 3 (best 1 - 100 worst), pointing to outstanding 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.