Scenario #: Tesla Craters 54% To Match S& p 500
Tesla shares have traded like they’re something special for years. But what if Tesla is just another S& P 500 stock? Bad things.
The S& P 500 is only trading for 17.6 times its earnings in the past 12 months. That’s a fraction of Tesla’s lofty 38.7 P-E. What would happen if Tesla traded like the S& P 500? Get ready for a 54% crash beyond the pain you’ve already seen.
If Tesla trades for just 17.6 times its trailing adjusted profit of $3.24 a share, that means it should actually only be worth 57.02 a share. That’s not far off the lowest 12-month price target of any Wall Street analysts at 85 a share.
Production And Sales By Quarter
Tesla deliveries vary significantly by month due to regional issues such as availability of car carriers and registration. On March 9, 2020, the company produced its 1 millionth electric car, becoming the first auto manufacturer to achieve such a milestone. In the third quarter of 2021, Tesla sold its 2 millionth electric car, becoming the first auto manufacturer to achieve such a milestone.
Tesla Stock Forecast: Q4 Option Analysis
The data about Q3 tells us that right before the results were announced, the implied volatility in the options market peaked at around 75%, and then it came down very sharply to around 55% which is practically the lowest level in a years span. This tells us that when we will be approaching Q4, this game will still be played and theres a way to be profitable in such cases.
For example lets assume the February 17th 225 Strike price which is currently valued at $31. This is around 13% of $225. Considering a situation where one is to write the put option and the stock will surge above $225 on the 17th of Feb, we will be making a whole of 13% in around 100 days which is considered a good percentage return as the EPS forecasting is on the up only for Q4.
On the contrary, if we have to see that Tesla will go below $225 on the 17th of Feb, then the put option will have to be executed making us buy the stock around $195 dollar considering that $190 is a very strong resistance for Tesla for the time being. And hence then this could be converted to a long-term trade for hold and hence earn returns.
Don’t Miss: 2021 Tesla Model Y For Sale
Tesla Stock Monthly Price Prediction For 2022
2022 is still fresh, and we understand that some investors dont buy stocks to hold for several years before selling. Therefore, it is needful that we briefly discuss Tesla price prediction for 2022 on a monthly basis. At least, this can help some potential investors time their involvement properly.
Though a lot can happen in a day, we dont expect Tesla stock price to climb too quickly. By the end of February, we expect it to average $934. By the end of March, we expect it to reach $958 and by April, it could get to $999.
If Tesla stock will maintain a decent momentum, it may get back to the $1,000 region in May. By June, it should be able to trade for $1,080 and proceed to hit $1,100 in July. By August, it may reach $1,120.
Stock Futures Open Higher
U.S. stock futures rose on Monday night as investors headed into the final trading days of 2022, deliberating whether a Santa Claus rally will appear and lift a market that has been weighed down by recession fears.
Dow Jones Industrial Average futures rose by 110 points, or 0.33%. S& P 500 and Nasdaq 100 futures advanced 0.45% and 0.58%, respectively.
Sarah Min
Also Check: Tesla Roadside Assistance Flat Tire
Tesla Us Dealership Disputes
Unlike other automakers, Tesla does not rely on franchised auto dealerships to sell vehicles and instead directly sells vehicles through its website and a network of company-owned stores. In some areas, Tesla operates locations called “galleries” which “educate and inform customers about our products, but such locations do not actually transact in the sale of vehicles.” This is because some jurisdictions, particularly in the United States, prohibit auto manufacturers from directly selling vehicles to consumers. Dealership associations have filed lawsuits to prevent direct sales. These associations argued that the franchise system protects consumers by encouraging dealers to compete with each other, lowering the price a customer pays. They also claimed that direct sales would allow manufacturers to undersell their own dealers. The United States Federal Trade Commission ultimately disproved the associations’ claims and recommended allowing direct manufacturer sale, which they concluded would save consumers 8% in average vehicle price.
The Leading Electric Vehicle Manufacturer Has Been Up Almost 2000% In The Last Three Years
Tesla is one of the most popular stocks among investors right now. It is also one of the most criticized. This battleground investment option has seen bulls and bears make strong arguments for and against the company, and so far, looking at Tesla’s stock price, the bulls have been proven right. With the rapid growth in production and everyone becoming increasingly optimistic about CEO Elon Musk and the electric vehicle market, it is no surprise to see Tesla’s stock price up 1,800% in the last three years.
But just because a stock was a buy yesterday doesn’t mean it is a buy today. Should you invest in Tesla right now?
Image source: Getty Images.
Recommended Reading: Mini Electric Car For Adults
Spac Liquidation Picks Up In December As Time Runs Out For Firms To Complete Mergers
Some 74 SPAC deals have liquidated in December, according to SPAC Research, as the blank-check companies wrap up a difficult year in an ugly market.
Year to date, a total of 128 special purpose acquisition companies have liquidated, compared to one SPAC liquidation in all of 2021, SPAC Research found.
SPACs have faced a rough 2022. These companies typically pool funding to identify and finance an acquisition of a smaller company and bring it public within a particular time frame.
Investors have become increasingly risk averse amid this year’s market tumult, curtailing the appetite for SPACs. The liquidations arrive as many of these companies reach the end of the time allotted for them to identify a target and merge with it. More than 600 SPACs priced in 2021, driving this year’s spike in liquidations.
Major names that have liquidated in December include Brad Gerstner’s Altimeter Growth 2. Crypto firm Bullish and Far Peak Acquisition also called off their merger this month.
Darla Mercado, Gina Francolla
Will Tesla Shares Go Up Or Keep Falling
Our bear market has plunged companies to the ground and Tesla is no exception.
In fact, the probability of us having to survive this bear market much longer is much higher than seeing a complete reversal overnight.
Bank of America and Wells Fargo CEOs are predicting a recession will hit the United States by Q1 of 2023.
If the United States is hit by a recession in the new year, then we can expect a prolonged bear market.
BofA economists expect market volatility to persist going into 2023.
Tesla CEO Elon Musk sold 22 million shares of the company cashing in approximately $3.6 billion earlier in December according to this SEC filing.
After the massive selloff, Elon said during a Twitter space call that he will not sell any Tesla shares for about two years.
The reason behind the selloff?
Musk said he sees a serious recession in 2023 and is preparing for a worst-case scenario.
Read Also: Electric Car Tax Credit 2021
Trading Expectations For The Upcoming Trading Day Of Wednesday 7th
For the upcoming trading day on Wednesday, 7th we expect Tesla Inc. to open at $179.28, and during the day ,to move between $168.60 and $189.10,which gives a possible trading interval of +/-$10.25 up or down from last closing price.If Tesla Inc. takes out the full calculated possible swing range there will be an estimated 11.46% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at $177.50 than the resistance at $190.14 ,our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Ipo Model S And Model X
In May 2010, Tesla purchased what would later become the Tesla Factory in Fremont, California, from Toyota for $42 million, and opened the facility in October 2010 to start production of the Model S. On June 29, 2010, the company became a public company via an initial public offering on NASDAQ, the first American car company to do so since the Ford Motor Company had its IPO in 1956. The company issued 13.3 million shares of common stock at a price of $17.00 per share, raising $226 million.
In January 2012, Tesla ceased production of the Roadster, and in June the company launched its second car, the Model S luxury sedan. The Model S won several automotive awards during 2012 and 2013, including the 2013 Motor Trend Car of the Year, and became the first electric car to top the monthly sales ranking of a country, when it achieved first place in the Norwegian new car sales list in September 2013. The Model S was also the bestselling plug-in electric car worldwide for the years 2015 and 2016.
Tesla announced the Tesla Autopilot, a driver-assistance system, in 2014. In September that year, all Tesla cars started shipping with sensors and software to support the feature, with what would later be called “hardware version 1”. In April 2015, Tesla entered the energy storage market, unveiling its Tesla Powerwall and Tesla Powerpack battery packs. The company received orders valued at $800 million within a week of the unveiling.
Recommended Reading: Ford Mustang Mach E Vs Tesla Model Y
Scenario #: Tesla Trades Like Apple And Gains 50%
Don’t want to take Wall Street analysts’ word for it? Another way to put a price tag on Tesla is using a PEG ratio similar to Apple .
What’s a PEG ratio? It’s a way to value stocks that might have higher P-E ratios because the companies are growing faster than other. The PEG is a stock’s P-E ratio divided by its expected growth rate. The ratio helps you price a stock in a way that accounts for its high growth.
And for Tesla, a good comparison might be Apple. In many ways, Apple has already achieved what Tesla wants. And Apple’s PEG ratio is 2. Applying that same PEG to Tesla yields a stock price of 189.22. If that’s right, it means Tesla stock still has 51% upside. Tesla’s PEG valuation, though, hinges on the company hitting 29.2% average annual growth. Analysts think Tesla’s revenue will rise 54% this year and 38% next year.
Tesla Stock Price Prediction For 2030
In 2030, the price of Tesla might be $4500, and according to some analysts, the bull run might lead to $5,200.
Based on what Tesla has already achieved in the electric vehicle industry, we expect that the company will reach new heights in 2030. Experts also think that Tesla stock will become a lot more valuable then.
Tesla stock have been traded publicly for close to 12 years. 2030 will mark 20 years of public trading, and we believe that can be a critical period in the stocks history. We expect that the stock can trade for $3,000. Of course, that is a conservative prediction. If we are to be very optimistic, then we can expect Tesla stock price to reach $4,000 or even $5,000.
Your capital is at risk. Other fees apply.
You May Like: Electric Car Charging Stations Alabama
How We Use Your Personal Data
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
- Verify your identity, personalize the content you receive, or create and administer your account.
- Provide specific products and services to you, such as portfolio management or data aggregation.
- Develop and improve features of our offerings.
- Gear advertisements and other marketing efforts towards your interests.
To learn more about how we handle and protect your data, visit our privacy center.
Tesla Stock Price Down 138% On Tuesday
The Tesla stock price fell by -1.38% on the last day from $181.35 to $178.85. It has now fallen 3 days in a row. During the last trading day the stock fluctuated 4.75% from a day low at $175.33 to a day high of $183.65. The price has been going up and down for this period, and there has been a 6.44% gain for the last 2 weeks. Volume has increased on the last day by 1 million shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 82 million shares were bought and sold for approximately $14.72 billion.
Here’show to buy TSLA stockif you’re new to investing.
The stock lies in the middle of a very wide and falling trend in the short term and further fall within the trend is signaled. Given the current short-term trend, the stock is expected to fall -41.49% during the next 3 months and, with a 90% probability hold a price between $85.67 and $112.34 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
Also Check: Tesla Charging Stations For Home
S& p 500 On Pace For Seventh Most Negative Year Since 1928
The S& P 500 is headed for its seventh most negative year dating back to 1928.
Since 1928, there have been only 20 years where the benchmark index finished down more than 10%.
Both 2008 and 2002 saw worse losses, with the S& P falling more than 23% and 38%, respectively. Data shows that 1931 was the worst year since 1928 for the index, which fell about 47%.
Samantha Subin, Gina Francolla
Tesla Stock Price Prediction For 2024
Tesla will likely enter 2024 stronger than ever. A lot is expected to have happened on the market by then, and as an innovative company, we expect that Tesla will grow its business significantly by then. If things should go as envisioned, Tesla stock can be worth as much as $1650, according to price prediction and forecast.
It is possible that Tesla will exceed our expectations in 2024. If the company should pull any stunt and become more appealing, investors could rush in, and that may drive the stock price up to $1,700.
Your capital is at risk. Other fees apply.
You May Like: Tesla Model Y Standard Range For Sale
Musk Tells Tesla Workers Not To Be ‘bothered By Stock Market Craziness’
Dec 28 – Tesla Inc Chief Executive Elon Musk told employees that they should not be “bothered by stock market craziness” after the company’s shares fell nearly 70% this year on jitters over softening demand for electric vehicles and Musk’s distraction with running Twitter.
In an email sent to staff on Wednesday and reviewed by Reuters, Musk said he believes that long term, Tesla will be the most valuable company on earth.
He also urged employees to ramp up deliveries at the end of this quarter, after the automaker offered discounts on its vehicles in the United States and China.
“Please go all out for the next few days and volunteer to help deliver if at all possible. It will make a real difference!” he said in the email.
Analysts expect Tesla to deliver 442,452 vehicles in the fourth quarter, according to Refinitiv data.
Tesla’s plummeting share price has hurt the value of shares owned by the EV maker’s employees. Tesla has offered stock compensation for most employees including factory workers.
The company’s shares rebounded on Wednesday, following an 11% slump in the previous session on a Reuters report that the automaker planned to run a reduced production schedule in January at its Shanghai plant. The news sparked worries of a drop in demand in the world’s biggest car market.
“Btw, don’t be too bothered by stock market craziness. As we demonstrate continued excellent performance, the market will recognize that,” he said.
Tesla Falls On Extended Production Suspension
Tesla shares slumped more than 5% before the bell following reports over the weekend saying that the company’s extending a production halt at its factory in Shanghai.
The production cut extends a previously planned production pause and comes as the company faces a resurgence in Covid cases among its workers.
Samantha Subin
Read Also: Tesla Model 3 Range Miles
Tesla Stock Forecast: Frequently Asked Questions
Tesla has underperformed in 2022, with share price being about 46% lower since the start of the year. The main reason is Tesla shares are expensive in this high-inflation market. There were also issues in the supply chain, increasing production costs and below-par deliveries.
But a significant reason is also undelivered promises from CEO Elon Musk. A lot of promises are again made for 2023, and it will be again a test for the CEO to live up to the expectations. But Tesla is still not on the buy list for 2023, simply because it is overvalued and with a concrete future as long as Elon Musk does not lead from the front.
Tesla shareholders did not have a good experience in 2022. The share price which initially reached over $400 started to retreat massively and now it is trading below $200. Multiple factors have contributed to the decline of Teslas share price which includes both Internal and external factors. Therefore, for Teslas stock price to go up the overall market condition needs to improve.
Tesla stock has been falling in the last 6 months. From breaching $400 to falling below $200, Teslas stock has been one of the worst-performing EV stocks this year. Multiple factors have led to the crash of Tesla stock crash. Some of those factors are US Federal Reserves multiple interest rate hikes, Chinas decision to impose strict measures to curb the spread of Covid-19 in the country, and CEO Elon Musks full-time involvement on Twitter.
Positive Factors
Negative Factors
