Tesla will join the SP500 S&P Global announced that Tesla will join the SP500 on Monday December 21st.
Tesla will become the largest company in history when included in the SP500 index. Its quotes soared 14% on news of inclusion in the index. The share of Tesla with a market capitalization of $ 385 billion in the total capitalization of the entire index (about $ 28 trillion) will exceed 1.3%. This event will entail an automatic inflow of investor funds in the amount of about $ 51 billion.
Inclusion in the S&P 500 is in line with Wall Street's expectations for Tesla's first full calendar year of profits in 2020. The company posted profits in the first three quarters of the year, despite a pandemic in which local authorities in California ordered the temporary closure of Tesla's only US car factory. The company posted a record $ 331 million in third-quarter profit driven by production at its Shanghai plant, where Tesla benefits from cheaper labor and strong demand for its more affordable Model 3.
In the third quarter, Tesla was backed by $ 397 million in loans, helping it reach profitability. The company aims to ultimately produce 20 million electric vehicles a year and become the world's largest automaker. Tesla delivered a record nearly 140,000 vehicles in the third quarter and is on track to meet its goal of 500,000 vehicle shipments per year.
TSLA moves in an uptrend channel . Today it has broken the resistance line of symmetrical triangle. Price encountered the resistance level of $460. The next markable target for bulls will be near $600.
Best regards EXCAVO
Teslamotors
TESLA at $700 before end of year?TSLA stock is very bullish just after the announcement of its S&P 500 inclusion.
Why $700?
I just found an old similar pattern...
Your comments are welcome.
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Legal disclaimer: I am not a financial advisor. The advice here given is not a financial advice even though my excitement might make it look like such. This account shouldn't be followed by anyone expecting something from me. You trade at your own risk and nobody can guarantee you results. Even if someone could, I don't.
TESLATesla Inc. stock rallied 12% in premarket trading Tuesday after S&P Dow Jones Indices said it will add the electric-car maker to the S&P 500 at the start of trading on Dec. 21.
Joining the benchmark index for U.S. equities puts the stock in the portfolios of countless index-tracking funds, and the many managed funds that would follow suit to balance their holdings.
The late-Monday announcement was months in the works after Tesla TSLA, 9.26% reported several consecutive quarters of GAAP profits, although Tesla’s hopes for an S&P addition had been foiled in September even as some on Wall Street had considered it a “done deal.”
The Dec. 21 date coincides with the S&P 500’s SPX, -0.61% quarterly rebalance, S&P Dow Jones said.
Due to the size of the addition, S&P Dow Jones Indices is seeking feedback from investors to determine whether Tesla should be added all at once or in two separate tranches, it said.
The inclusion “is a major feather in the cap for the Tesla bulls after much agonizing around not getting into the S&P 500 in early September,” Dan Ives with Wedbush said in a note Monday. “We believe the sustained profitability trajectory as evidenced in the September quarter was the final straw that got Musk & Co. into the S&P 500 this time around despite all the noise around tax credit boosts on the Street.”
Tesla will replace an S&P 500 company to be named later, as it gets closer to the rebalancing, S&P Indices said.
Tesla in July reported its fourth straight GAAP profit, staying in the black in its second-quarter despite pandemic-related factory shutdowns.
It went on to report a third-quarter profit as well, but the index inclusion remained elusive.
Tesla shares have quintupled this year, hitting more than 30 record closes in the process, compared with gains around 12% for the S&P. The run prompted a 5-to-1 stock split in late August.
@Market Watch.
Best regards,
RyodaBrainless
"Live to Ride and Ride to Live"
TSLA: Tesla Gets Added to The S&P500Tesla (TSLA) is a one-of-a-kind electric vehicle company that is listed on the NASDAQ exchange. Just now, it has been announced that the stock will be added to the S&P500. In this analysis, we’ll take a look at the fundamentals of the company, as well as what this news means for Tesla.
Some of the information in this post is based on the analysis I wrote in March.
S&P500 Requirements
- There are certain requirements a company must fulfill in order to be added to the S&P500.
- The company must be a U.S. Company
- Must have a market cap of at least $8.2 Billion
- Must be highly liquid
- Must have a public float of at least 50% of its shares outstanding
- Its most recent quarter’s earnings and the sum of its trailing four consecutive quarters’ earnings must be positive.
Tesla had a hard time fulfilling the last part of the requirement, as it was not profiting for a while. They demonstrated increasing revenue, but a lot of their profits were reinvested into building infrastructures/gigafactories, and R&D.
Fundamental Analysis
- Despite the Corona Virus (COVID-19), Tesla has managed to manufacture and deliver record-high number of vehicles for 2020
- Tesla ended 2019 with 6 Billion Dollars, and early this year, they raised an additional 2 Billion through stock offering
- This indicates that Tesla had enough money to go endure the chaos caused by the viral outbreak
- Tesla is one of the biggest beneficiaries of the Zero Emission Vehicle (ZEV) credit regulations, racking up huge ZEV credits that other automotive companies pay billions to purchase
- In March 2020, Tesla has taken up 25% of the Chinese EV market, and further domination in arguably one of the most important markets is anticipated.
- With Biden’s winning the election almost being certain, it’s anticipated that Tesla will heavily benefit from Biden’s green policies.
Arguments against Tesla
- Tesla has a negative Earnings Per Share ( EPS ). Negative earnings are a red flag for value investors
- Tesla's operating margin is arguably too low, and not enough to be profitable for the long term
- Tesla's Debt to Equity ratio is quite high, and is a reason for concern, as it suggests that Tesla is a higher risk investment
- While gross income growth of Tesla for the past three years have been great, these are not sustainable numbers
- There are arguments against Tesla's management; some argue that Elon Musk gave himself too big of a compensation package
- This is concerning to investors, as the company has still not turned an annual profit.
- Most of the arguments against Tesla are in regards to their rather questionable financials, which they have now proven to be solid by being added to the S&P500
Future Projections
- While the Electric Vehicle ( EV ) Market continues to grow, Tesla's market share remains at 17~18% of a rapidly growing industry
- Tesla's gigafactories have shown unprecedented progress in terms of how fast the factory was built, as well as the automated manufacturing process
- Tesla has billions miles of autonomous driving data, which is more data than any other player in the market for self-driving cars
- Based on the vast amount of data, Tesla's self driving cars will allow the company to generate software-company-like margins
- Tesla has better battery efficiency compared to combustion engine cars, and can still benefit from economies of scale
- According to EV experts, Tesla's vehicles are at least 4-5 years more advanced than those of its competitors.
Technical Analysis
- We can look at the daily chart for some insight regarding technical analysis
- Tesla is notorious for ignoring a lot of the technical signals that appear on the chart.
- As it’s more driven by news and fundamental developments, it’s best to merely reference the technical aspect.
- We can see a clear uptrend marked by the ichimoku cloud support
- Prices trading above the 100 Simple Moving Average (SMA) is a bullish sign
- We can see that we have never broken below the 200 SMA since Nov. 2019
- As we consolidate in a bullish pennant pattern, bullish news is likely to cause a breakout near the apex of the pattern.
Summary
In summary, Tesla is not for the average value investor, seeking to purchase stocks at an undervalued price. It is, however, for the investors who know how to value the company by future expectations. I believe that Tesla is an automotive company to the same degree as Amazon is a bookstore. There is a lot more potential in the fundamentals of this company that many fail to recognize, and despite the short term hardships it may face, the innovative values that Tesla prioritizes is what brought the company to the S&P500. This obviously isn’t the end for Tesla. From a conservative view, I can see the stock easily double in price from these levels. A lesson to take from this investment is that if you have an in-depth understanding of the asset or security you invest in, despite volatile price actions and bearish news, the patience of holding can greatly reward you.
If you like this analysis, please make sure to like the post, and follow for more quality content!
I would also appreciate it if you could leave a comment below with some original insight.
Tesla long buy chartsConsidering i am long and currently hold 13 shares in my portfolio (for disclosure purposes) i have and extra buy zone for Tesla included. Normally I wouldn't sell Tesla and would just recommend buying when it goes down, if you are swing trading these are zones that could be useful. The most optimal buy zone is started at 318 and below. Most likely it is unlikely we see Tesla dip that far is still is a possibility that investors would be foolish to not jump on when the time comes. The second zone starts at 319-382. If you would like to add small amounts to your position 393-420. 421-447 is a holding zone and upwards from that is where you should start taking profits
$TSLAWe need some market sentiment and movement to push foward. We bounced off support really nicely, and Id like to see those two levels get broken with some conviction to send TSLA back on track. With election news coming a we could see market wide dips but So far TSLA has stayed in range so i would expect to see TSLA consolidate and could possible present a iron condor situation.
TSLA Bottom Out? TESLA AT $400 IS UNDERVALUEDTechnical Analysis on Tesla Motors Moving Into Earnings | BULLS LOCKING IN? I believe $Tesla will act as $BTC once it broke 10k.
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Looking at Tesla at this level it almost looks like investors are comfortable with this $400 level and could possibly be ready for the next leg up. True long investors most likely waited out past the battery day hype to purchase any additional shares and could be looking to load up soon.
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Here are the main takeaways from Tesla’s 2020 battery day:
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TABLESS BATTERY CELLS WILL IMPROVE TESLAS’ RANGE
Tesla plans to manufacture its own “tabless” batteries, which will improve its vehicles’ range and power. The new batteries will be produced in-house, which Musk says will reduce costs and bring the sale price of Tesla electric cars closer to gasoline-powered cars. It’s expected to lower Tesla’s cost per kilowatt-hour, a key metric used to measure electric vehicles’ battery packs. The tabless cells (Tesla is removing the tab that connects the cell and what it’s powering), which Tesla is calling the 4680 cells, will make its batteries six times more powerful and increase range by 16 percent.
Tesla currently sources its batteries from Panasonic and is likely to keep doing so for some time, but moving battery production in-house has been on Musk’s to-do list for some time; in 2018 a shortage of those cells added to production delays. Musk has said the pace of battery production at Panasonic had slowed production of both the Model 3 and the Model Y.
MODEL S PLAID WILL COST $139,990 AND BE AVAILABLE IN 2021
Musk has been teasing the Plaid powertrain for a while, which will be a step above its Ludicrous model. It will have a range between charges of 520 miles, get from 0-60 mph in under two seconds, and a top speed of 200 mph. The price is listed on Tesla’s website at $139,990. Musk had noted in the past that a Plaid trim level would “cost more than our current offerings,” which it does. It will be available in the Model S in late 2021.
A NEW CATHODE PLANT IS COMING... EVENTUALLY
Musk said Tesla will build a new cathode plant for its batteries in North America, part of its quest to reduce supply chain costs and simplify cathode production. It’s also making improvements to its process that will make cathodes 76 percent cheaper, and produce zero wastewater. The company also plans to diversify the cathodes it uses, because of low nickel supplies.
We don’t know where the new cathode plant will be built, but Musk said in July when Tesla announced its next factory would be in Austin, Texas that he would “strongly consider” runner-up city Tulsa, Oklahoma for future projects.
NO MORE COBALT IN THE CATHODES
Tesla plans to eliminate the use of cobalt in its cathodes. Musk has said he wanted to eliminate it entirely in the past — even though Tesla’s existing batteries use very little. Cobalt is often mined under conditions that violate human rights, which has led to a push to find other materials to replace it.
Musk didn’t offer a timeline for when the company will stop using cobalt but said it will make its batteries significantly cheaper.
“It’s absolutely critical that we make cars that people can actually afford,” he said. “Affordability is key to how we scale.”
A $25,000 CAR IS A NEW GOAL
Tesla plans to reduce the cost of its battery cells and packs, with an end goal of building a $25,000 electric car. Tesla will hit this goal using its new “tabless” battery cells, and changing the materials inside the cell, which he said should allow Tesla to “halve” the price per kilowatt-hour, Musk said.
This isn’t the first time Musk has predicted that Tesla would dramatically reduce the costs of its electric cars. He first promised a $25,000 EV back in 2018, which he said was possible within three years.
DotcomJack | Long HODL
(outsourced from TheVerge)
Tesla buyI want to show my future perspective on $TSLA with a technical analysis.
It is a super loved action among the staff of this community, that looking at it, we see that it has a fairly clean 𝐮𝐩𝐭𝐫𝐞𝐧𝐝.
From August until now, 𝐚 𝐭𝐫𝐢𝐚𝐧𝐠𝐥𝐞 𝐩𝐚𝐭𝐭𝐞𝐫𝐧 𝐡𝐚𝐬 𝐟𝐨𝐫𝐦𝐞𝐝, breaking it upwards.
At the bottom of the triangle is an area that touched 3 times before breaking it, so that area is 𝐚 𝐯𝐞𝐫𝐲 𝐬𝐭𝐫𝐨𝐧𝐠 𝐬𝐮𝐩𝐩𝐨𝐫𝐭 ( 𝟑𝟑𝟖.𝟓𝟖 )
However, in the upper part of the triangle, it is a virgin area, it is 𝐚 𝐫𝐞𝐬𝐢𝐬𝐭𝐚𝐧𝐜𝐞 ( 𝟓𝟏𝟎.𝟖𝟓 ) that sooner or later has to touch it at least, although it will surely end up breaking it as well.
In the middle we have 𝐭𝐡𝐞 𝐩𝐢𝐯𝐨𝐭 𝐚𝐫𝐞𝐚 ( 𝟒𝟐𝟎.𝟔𝟐 ), it is an area that in the short term has to remain as support, 𝐨𝐟𝐟𝐞𝐫𝐢𝐧𝐠 𝐚 𝐠𝐨𝐨𝐝 𝐞𝐧𝐭𝐫𝐲 𝐩𝐨𝐢𝐧𝐭.
If it respects that zone, and continues up, 𝐭𝐡𝐞 𝐞𝐧𝐭𝐫𝐲'𝐬 𝐓𝐏 destination would be at resistance 𝟓𝟏𝟎.𝟖𝟓.
The 𝐞𝐧𝐭𝐫𝐲´𝐬 𝐒𝐋 will be at 𝟒𝟎𝟒.𝟗𝟐 .
So with this trade if it goes well, it offers us with a 𝐒𝐋 -𝟑.𝟓𝟖%, a 𝐩𝐫𝐨𝐟𝐢𝐭 𝐨𝐟 𝟐𝟏.𝟑𝟏%. What is a 𝐫𝐢𝐬𝐤 / 𝐫𝐞𝐰𝐚𝐫𝐝 𝐫𝐚𝐭𝐢𝐨 𝐨𝐟 𝟓.𝟗𝟔.
🅴🅰🆂🆈 🆂🆄🅼🅼🅰🆁🆈
𝐁𝐮𝐲 ➡️ 𝟒𝟐𝟎.𝟔𝟐
𝐒𝐋 ➡️ 𝟒𝟎𝟒.𝟗𝟐
𝐓𝐏 ➡️ 𝟓𝟏𝟎.𝟖𝟓
𝐑𝐢𝐬𝐤 / 𝐑𝐞𝐰𝐚𝐫𝐝 𝟓.𝟗𝟔