Tesla Inc. is an American electric vehicle (EV) and clean energy company that designs, manufactures, and sells high-performance EVs and powertrain components.
The company also builds battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services. Tesla owns its sales and service network and sells electric power train components to other automobile manufacturers.
Technically, the price appears to have broken out of a falling wedge pattern (see the black converging trendlines on the main chart as well as the insert), which makes the stock attractive as an investing option. The falling wedge pattern is often considered bullish, especially when found in an uptrend. The confirmation of the pattern's bullish nature occurs when the price breaks out above the upper (resistance) trendline. This breakout is often accompanied by a surge in volume.
The stock is trading well above its 200-day simple moving average (SMA) of $202. The stock also remains above its 50% Fibonacci retracement level.
The start of upside price momentum, according to the MACD indicator, and the upwards trajectory of the On-Balance Volume (OBV) indicator, support our bullish bias.
Local investors can gain exposure to Tesla through the JSE-listed FNB ETNs under the share codes TSETNQ (without currency exposure) and TSETNC (with currency exposure).
Share Performance
Share Information
| Share code | TSLA |
|---|---|
| Industry | Automobiles & Components |
| Market Capital (USD) | 845.87 billion |
| One year total return | -13.68% |
| Return year-to-date | 116.35% |
| Current price (USD) | 266.50 |
| 52 Week high (USD) | 313.80 |
| 52 Week low (USD) | 101.81 |
| Financial year end | December |
| Closing paragraph | The stock has seen robust year-to-date growth, and several technical indicators confirm a continuation of the bullish trend. |
Consensus Expectations (Bloomberg)
| FY22 | FY23E | FY24E | FY25E | |
|---|---|---|---|---|
| Headline Earnings per Share (USD) | 4.07 | 3.35 | 4.77 | 6.18 |
| Growth (%) | -17.79 | 42.53 | 29.59 | |
| Dividend Per Share (USD) | - | - | - | - |
| Growth (%) | - | - | - | |
| Forward PE (times) | 79.65 | 55.88 | 43.12 | |
| Forward Dividend Yield (%) | - | - | - | |
| Closing paragraph | Attractive earnings growth is expected from 2024 onwards. | |||
Buy/Sell Rationale
Technical Analysis:
Long-term fundamental view
| Share Name and position | CNC - Buy (Continue to hold) | BTAL - Buy (Continue to hold) | IEX - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 66.44 | 19.20 | 212.62 |
| Current | 67.85 | 19.6 | 210.91 |
| Movement | 2.1% | 2.1% | -0.8% |
| Summary text |
The stock remains above key support levels and is trading just below its 200-day simple moving average. Upside price momentum remains supportive.
Our profit target is $76 with a trailing stop-loss of $64.20. Exit the position on 30 November 2023. |
A falling wedge pattern remains of interest. The stock is trading below its 200-day simple moving average, with upside price momentum supportive of the trade idea.
Our profit target is $21 with a stop-loss of $18.90. Exit the position on 13 December 2023. |
The price remains above key support. Currently below its 200-day simple moving average. Fading upside momentum is a concern.
Our profit target is $240 with a trailing stop-loss of $203. Exit the position on 20 October 2023. |
| Share Name and position | GS - Buy (Continue to hold) | STRA - Buy (Continue to hold) | AZO - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 344.57 | 76.64 | 2556.06 |
| Current | 341.89 | 75.75 | 2475.12 |
| Movement | -0.8% | -1.2% | -3.2% |
| Summary text |
The price recently crossed below its 200-day simple moving average. However, fading downside price momentum supports the trade idea.
Our profit target is $76 with a trailing stop-loss of $58.40. Exit the position on 24 January 2024. |
The accumulation phase of the stock has persisted. Trading below its 200-day simple moving average but upside momentum has halted, which is a concern.
Our profit target is $85 with a trailing stop-loss of $73.20. Exit the position on 22 November 2024. |
The price appears to be developing an incomplete broadening top pattern, which remains of interest. It is testing its 200-day simple moving average. Upside price momentum has halted, which is a concern.
Our profit target is $2 800 with a trailing stop-loss of $2 458. Exit the position on 8 November 2023. |
