On Tuesday, Tesla announced plans to sell up to $5 billion worth of its stock in an "at-the-market" offering program.
In a Securities and Exchange Commission filing, the electric carmaker stated that it has entered into a “equity distribution agreement” to sell up to 10 million shares, or about 1.1% of its total shares outstanding.
Tesla’s move apparently seeks to take advantage of its recent stock price climb and split. Its shares have surged more than +50% since it revealed plans for the stock split.
According to Tickeron, TSLA's in Uptrend: Moving Average Convergence Divergence (MACD) Histogram just turned positive
This is a Bullish indicator signaling TSLA's price could rise. Traders may explore going long on the ticker or buying call options. In 34 of 44 cases where TSLA's MACD histogram became positive, the price rose further within the following month. The odds of a continued Uptrend are 77%.
Current price $476.61 is above $299.82 the highest support line found by A.I. Throughout the month of 07/30/20 - 08/31/20, the price experienced a +68% Uptrend. During the week of 08/24/20 - 08/31/20, the stock enjoyed a +24% Uptrend growth.
Technical Analysis (Indicators)
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 47 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 72%.
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 10 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Indicator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 27 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 60%.
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 77%. During the last month, the daily ratio of advancing to declining volumes was 1.74 to 1.
The Tickeron Profit vs. Risk Rating rating for this company is 2 (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.
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 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 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: P/B Ratio (47.03) is normal, around the industry mean (-9.74). TSLA's P/E Ratio (1296.70) is considerably higher than the industry average of (222.15). 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).