RoboTaxi Development boom in US.
Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
Growth Stock Analysis as of 20 April 2024
NYSE: Tesla Inc (TSLA)
- TESLA established in 2003, Tesla aimed to bring electric vehicles to the market, initially focusing on luxury sports cars before transitioning to more affordable, mass-market options.
- Tesla introduced the Roadster in 2008, followed by the Model S in 2012. The Model 3, Tesla’s first “affordable” car, was announced in 2015 and produced in 2017.
- Tesla was a trailblazer in redefining the electric vehicle market. Unlike traditional manufacturers, Tesla recognized the potential by prioritizing performance and targeting the high-end market segment.
- Tesla’s business model centers around direct sales and service, rather than relying on franchised dealerships.
Top Institutional Shareholders of Tesla:
Vanguard Group Inc = 7.22%
Blackrock Inc. = 5.91%
State Street Corporation = 3.42%
Vanguard 500 Index Fund = 2.12%
Geode Capital Management = 1.74%
Tesla’s SWOT Analysis:
Pros of Tesla Business:
- Tesla’s lack of legacy infrastructure is a major advantage, positioning the company to adapt to changing industry dynamics more easily than traditional automakers.
- Tesla’s charging and energy storage ventures present significant growth opportunities for shareholders.
- Tesla maintains a vastly stronger balance sheet compared to other major auto companies, boasting significantly higher cash reserves relative to long-term debt.
- The future potential of autonomous vehicles and the advent of Robotaxis is immense, but these advancements are still in the distant future.
Risk of Tesla Business:
- Tesla’s primary business is facing challenges from Chinese competitors, leading to deteriorating fundamentals.
- Mounting competition from China, escalating trade tensions, and branding issues further complicate the landscape.
- Tesla, Inc. CEO Elon Musk confirms plans to reveal a Robotaxi service in August 2023 but market already discounts its growth in price.
Software – Hardware Backstage:
Tesla transcends traditional car manufacturing, operating as a software company with advanced technology. Its vehicles rely on sophisticated software that updates wirelessly and incorporates self-driving capabilities introduced in 2014. Tesla collaborates with key technology partners like Toyota, Mercedes, and Panasonic to overcome manufacturing challenges and fulfill its vision of revolutionizing the electric vehicle market.
Fundamentals:
- Market Cap: 468.96 Billion
- Revenue: 96.77 Billion
- 52 Week Range: 146.24 – 299.29
- EPS: 4.73
- P/E Ratio: 31.08
- Beta: 2.43
Technical for a long-term perspective:
- Tesla is trading near its 52week low below $150.
- Price is hitting the lower trendline support levels for the 3rd time which is a multiyear support.
- Volume will start increasing at the bottom level which shows the accumulation phase in this stock.
- RSI is trading near its oversold zone at 30 which will bounce towards higher levels and price will move up.
- Once it crosses above the upper EMA levels then stock will turn into very bullish sentiment.
- Entry = 147
- Stop Loss =Â 125
- Target = 215 / 262 / 480
- Stop Loss =Â 125
- Entry = 147
Our Final Thought:
When everyone is negative about the good company that means this is the best time to add such company into your portfolio and it is also available at its 52 week low price below 152. While Tesla didn’t invent the electric car, its innovative approach to design, long-lasting batteries, and direct-to-consumer sales model have significantly impacted the market. This, combined with its extensive technological support network, has solidified Tesla as one of the most successful players in the automotive industry today.
Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
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