To Be or Not to Be – This Is The Question for Elon Musk
It is a never-ending saga – will Tesla enterprise survive or not. Two topics of conversations (both starting with the letter “T”) lead to broken families, lost friends or clients: President Trump and Tesla. We will not be commenting on the first topic but would like to add two cents to the second.
Here are the main arguments why we believe in Tesla survivability:
Tesla Model 3 is a beautiful great car;
Elon Musk told us yesterday that Model 3 had (or soon would) be profitable;
Mr. Musk has apologized for his comments during the last conference call (he blamed his rudeness for insufficient sleep – but with all his ventures, it is understandable) – let’s forgive him; at least it means that somebody at his Board of Directors is sober and he listened to the advice – and this is unusual for him!
Production numbers continue to increase, and anecdotal evidence support the strong demand for Model 3;
I have not seen many electric cars of the same esthetical beauty and quality on the roads yet. Have you?
Should we give him (and the company) another chance?
To answer this question, investors need to change their traditional Graham’s mentality in evaluating companies. After all, nobody believed in Apple in 1980 when it went public – and it is about $1 trillion in capitalization first time in the history of publicly traded companies.
Aroon Indicator for TSLA shows an upward move is likely
TSLA's Aroon Indicator triggered a bullish signal on May 26, 2023. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 295 similar instances where the Aroon Indicator showed a similar pattern. In of the 295 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 05, 2023. You may want to consider a long position or call options on TSLA as a result. In of 76 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TSLA just turned positive on May 05, 2023. Looking at past instances where TSLA's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
TSLA moved above its 50-day moving average on May 19, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TSLA crossed bullishly above the 50-day moving average on May 26, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TSLA advanced for three days, in of 335 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TSLA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TSLA broke above its upper Bollinger Band on May 22, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable 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 (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 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (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.
The Tickeron Valuation Rating of (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 (12.739) is normal, around the industry mean (9.619). P/E Ratio (56.818) is within average values for comparable stocks, (95.958). Projected Growth (PEG Ratio) (2.136) is also within normal values, averaging (5.867). TSLA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.041). P/S Ratio (7.800) is also within normal values, averaging (72.200).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
