Tesla: Elon Musk Has A Problem
Founded in 2003 by visionary entrepreneur Elon Musk, Tesla has become a pioneer in the automotive industry. The company is one of the world's largest manufacturers of electric cars.
Beyond cars, Tesla has expanded its reach into renewable energy solutions, including solar panels and energy storage products. Musk's bold vision, commitment to technological advancement, and the company's relentless pursuit of sustainability have positioned Tesla as a transformative force in the intersection of transportation and clean energy.
Technical analysis
After the completion of the impulse phase, marked on the chart as ①-②-③-④-⑤, the price of Tesla shares continues to move within the downward trend.
We expect the share price to stabilize once it reaches $220, after which it will begin to move north to $250.
Fundamental Analysis
Tesla's revenue for the three months ended September 30, 2023 was $23.35 billion, up 8.9% compared to the third quarter of 2022.
Author's elaboration, based on Seeking Alpha
In addition to the company's margins continuing to decline, the Model S and Model X deliveries have continued to disappoint in recent quarters.
Author's elaboration, based on quarterly securities reports
Also, production and delivery volumes of Model 3 and Model Y, which are the cheapest in Tesla's line of cars, decreased compared to the previous quarter, which casts doubt on Musk's ability to attract new customers.
Author's elaboration, based on quarterly securities reports
The company's earnings per share (EPS) for the three months ended September 30, 2023 were $0.66, missing analysts' expectations of $0.07. But more importantly, this figure decreased by 37.1% compared to the previous year due to increased competition in the global electric vehicle market and lower prices for Tesla products.
Author's elaboration, based on Seeking Alpha
On the other hand, the company's fourth-quarter EPS is expected to be in the range of $0.55-$0.92, down 38.17% from the fourth quarter of 2023. Tesla's Non-GAAP (TTM) P/E is 65.26x, which is 361.86% higher than the sector average and 57.91% lower than the average over the past five years. The company's Non-GAAP P/E [FWD] is 73.66x, indicating that it is overvalued in the current period as Chinese automakers continue to expand their presence in Europe and the United States actively.
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Analyst’s Disclosure:
This article may not take into account all the risks and catalysts for the stocks described in it. Any part of this analytical article is provided for informational purposes only, does not constitute an individual investment recommendation, investment idea, advice, offer to buy or sell securities, or other financial instruments. The completeness and accuracy of the information in the analytical article are not guaranteed. If any fundamental criteria or events change in the future, I do not assume any obligation to update this article.
Beyond cars, Tesla has expanded its reach into renewable energy solutions, including solar panels and energy storage products. Musk's bold vision, commitment to technological advancement, and the company's relentless pursuit of sustainability have positioned Tesla as a transformative force in the intersection of transportation and clean energy.
Technical analysis
After the completion of the impulse phase, marked on the chart as ①-②-③-④-⑤, the price of Tesla shares continues to move within the downward trend.
We expect the share price to stabilize once it reaches $220, after which it will begin to move north to $250.
Fundamental Analysis
Tesla's revenue for the three months ended September 30, 2023 was $23.35 billion, up 8.9% compared to the third quarter of 2022.
Author's elaboration, based on Seeking Alpha
In addition to the company's margins continuing to decline, the Model S and Model X deliveries have continued to disappoint in recent quarters.
Author's elaboration, based on quarterly securities reports
Also, production and delivery volumes of Model 3 and Model Y, which are the cheapest in Tesla's line of cars, decreased compared to the previous quarter, which casts doubt on Musk's ability to attract new customers.
Author's elaboration, based on quarterly securities reports
The company's earnings per share (EPS) for the three months ended September 30, 2023 were $0.66, missing analysts' expectations of $0.07. But more importantly, this figure decreased by 37.1% compared to the previous year due to increased competition in the global electric vehicle market and lower prices for Tesla products.
Author's elaboration, based on Seeking Alpha
On the other hand, the company's fourth-quarter EPS is expected to be in the range of $0.55-$0.92, down 38.17% from the fourth quarter of 2023. Tesla's Non-GAAP (TTM) P/E is 65.26x, which is 361.86% higher than the sector average and 57.91% lower than the average over the past five years. The company's Non-GAAP P/E [FWD] is 73.66x, indicating that it is overvalued in the current period as Chinese automakers continue to expand their presence in Europe and the United States actively.
Show your support by liking👍, following✅, sharing🙌, and commenting✍! Feel free to share your ideas and charts below. Your engagement is crucial in spreading the word and maintaining the relevance of the content. Thanks for being an essential part of this community!
Analyst’s Disclosure:
This article may not take into account all the risks and catalysts for the stocks described in it. Any part of this analytical article is provided for informational purposes only, does not constitute an individual investment recommendation, investment idea, advice, offer to buy or sell securities, or other financial instruments. The completeness and accuracy of the information in the analytical article are not guaranteed. If any fundamental criteria or events change in the future, I do not assume any obligation to update this article.
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