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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.
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NASDAQ:TSLALong
by Michael_Wang_Official
45
XPENG -METEORIC RISE, MEANS METEORIC FALL !! XPEV AND NIO ANALYSSo in the last 3 days in particular , XPEV the Chinese electric vehicle maker, has been exploding up, and there are many reasons to this which we will cover here in a moment but as an investor who is heavily invested in XPEV this causes me reasons for concern. In a lot of the cases (excluding Tesla), when we see a meteoric rise such ass XPEV and NIO had in the last few days, this will mean a lot of investors that don’t really analyze the company properly and just jumping in the hype – but these are usually short term investors who are looking to make a hit and run. For me as a long-term investor in the EV market that means bad news. A bit of Technical: IMPULSE WAVE - positive sentiment causes massive volumes that are unstable and not sustainable There is a clear method to how an impulse wave should work, and when you experience 3 motive waves as we see here that are all extended one after the other that means the corrective waves are going to be just as sharp. We are looking at retracing wave of 618 of FIB if the stock finishes its motive wave in these manner -which means stock will fall down below the 30$ line. NIO Wave chart: Lets talk FUNDAMENTAL : -XPEV delivered 3,040 in Oct over 200% from the previous year and considering the COVID-19 environment around us at the moment ,that is tremendous in my eyes, add to that the fact that 70% of those were the new Sport sedan P7 which is getting very positive reviews. The EV market is creating new companies like mushrooms after the rain , and though competition is good , inflating a market with so much money and so many brands before it matured enough to sustain it can cause a domino effect and drop the EV market down to new lows and requires us to be patient to see our investment going profitable again. The earnings of Xpeng are coming in Nov 12 and are expected to be positive – and here exactly is the issue – if expectations from investors on earnings are so high , even positive earnings with a slight downside can bring the stock down like a house of cards at -10% and even more. To sum up – I am a strong believer in EV stocks whether Biden wins or not, but I would say : don’t put all your eggs in the EV market as this can get rocky! WE analyze the stock market acc to the great Ralph Nelson Elliot and combine that with fundamental and sentiment analysis on a theory we call Market Cycle Based Analysis and that gives us high prediction rate 😊 This is not a recommendation but our personal advise Trade Safe, and invest smart !
NYSE:XPEVLong
by FDGT_academy
10
TSLA longsTsla has gone down since my last analysis but, the sell price was never reached and I believe a complex correction is about to finish forming contrary to my previous analysis. After this formation if we get a nice bullish candle in the $380's-$400's I believe Tsla will continue higher to the $600's. Tsla is one of the only stocks to actually rally (a historic rally at that) during lockdowns and I believe the second wave of corona (regardless if we shut down or not) won't affect the company and the stock.
NASDAQ:TSLALong
by snipdapipz
2
$TSLA - MOMENT OF TRUTH! Bullish pattern forming$TSLA is in a moment of truth here. #TSLA formed a bullish pennant after hitting all time highs. Pennants are considered continuation patterns (in this case a continuation of the violent uptrend). The volume is also declining in typical fashion during these types of continuation patterns. The Stoch RSI is oversold which TSLA responds well to on the 1D chart. The yellow arrows are when TSLA reported delivery numbers too. These have typically been the launch point to new breakouts. If TSLA can break out of the pennant, the expected mid term move is towards $616 where the 1.272 Fib extension is. This would also coincide with its inclusion in the S&P 500 at the end of the year or the beginning of 2021. Bullish pennants aren't a guaranteed bullish continuation though. They break to the upside a little more than half the time so prudent traders will want to watch for the breakout first. Like & share! 👍🏼📣
NASDAQ:TSLALong
by TheTravel1ngTrader
TSLA - 12.06% Potential Profit - Bullish PennantShort-term Bullish Pennant following a 1-month correction interrupting a massive bull run. Multiple new support confirmation in the past few days. I am being very selective lately and I only trade when I see very limited risk, with potentially great rewards. This is why I like this setup. There is no clear technical target, this is why I will adjust stop-losses daily (and intraday) based on how the market behaves. - Target Entry $442.04 - Target Stop Loss $436.02 - Target Exit $495.31 About me - P/L September +49.18% | August: +232.32% | No Trades without Analysis - Note that I tend to adjust stop losses in order to secure profits early and preserve capital. This means that the target price is going to be achieved as long as there are no strong pullbacks that trigger my new adjusted stop loss
NASDAQ:TSLALong
by maschera
3