2023/01/17 (150.013) Technical Analysis

TESLA Stock Still Fundamentalky The Most Overvalued Auto Stock In The World,
That`s Why We Keep This Long 4XSetUp Just Only Because Of Technical Analysis Reasons

After a crushing December, Tesla stock has rebounded in the new year. The electric car manufacturer led the Nasdaq technology index on Tuesday. Although Bank of America analyst John Murphy lowered his price target for Tesla, he believes Tesla stock is fairly valued at that level. Tesla is up as much as 6.5 percent at its peak Tuesday, dragging other EV stocks like Rivian and Lucid with it. The reason for the jump in price, in addition to the increasing commitment to electric vehicles by the car rental company Hertz, is the assessment of an analyst at Bank of America. John Murphy renewed his price target for Tesla to $130. While it was a bit higher at $135 previously, what mattered most was his statement that the stock appears fairly valued at $130. “While headwinds around demand and increased competition aren’t going to abate anytime soon, Tesla’s self-funding status and continued access to relatively cheap capital should support future growth,” the analyst said.

The TESLA Share Has At Least Extended A Short-Term Bottom,
That`s Why i Formilated An High Speculative Long 4XSetUp Trading Capability

2022 was a horror year for Tesla: the share price fell by more than 60 percent. And in 2023 the sell-off continued, with no strong recovery in sight. There are mutliple reasons for this. What rises high can fall low – Tesla shareholders can now sing a song about that. Between the beginning of 2020 and the end of 2021, the shares of the Texan electric car pioneer experienced an unprecedented high: the price rose from just under 25 euros at its peak to more than 356 euros and meanwhile made Tesla founder Elon Musk the richest person in the world. Then the stock suddenly went into reverse gear: Since September 2022, the price has continued to plummet. Current level: 112 euros (as of January 17, 2023). A drop of more than 60 percent. This not only affects many small investors, after all Tesla is one of the most popular individual stocks among Germans. Many professional investors also rely on the e-car builder. For example, the Vanguard Group is one of the largest Tesla shareholders with 62.44 million shares (equivalent to almost 2 percent of all shares).

Tesla is also disproportionately represented in some funds, for example
Ark Innovation ETF (Weight: 6.79%)The Baillie Gifford Long Term Global Growth Fund (Weight: 3.32%)
Allianz Global Artificial Intelligence (weighting: 3.56%)
10XDNA – DIsruptive Technologies (weight: 7%)

But although Tesla’s price has fallen significantly, a strong recovery is not in sight for the time being. There are four reasons for this
Problem 3: Demand for Teslas is falling
Problem 3: Competition in the fast lane
Problem 3: Tesla is leaderless
Problem 4: The rating is still high

Despite the price developments, some fund managers are still convinced of Tesla’s potential. US investor Cathie Wood, for example, only bought a further 19,125 shares for her Ark Innovation ETF at the end of December 2022. Frank Thelen (10XDNA – Disruptive Technologies Fund) is also still a Tesla advocate: In an interview with “Capital” he described Elon Musk as a “great role model in terms of courage and pioneering spirit” and continues to see the company as a “positive investment case and a reasonable opportunity-risk ratio for the fund at the current valuation”. Others, on the other hand, are positioning themselves for a further decline. With the Tesla share crash alone, short sellers earned almost 16 billion dollars in 2022, according to a study by the “Handelsblatt”. And many of them are apparently speculating on further unrest in Musk’s cosmos: According to the report, the number of short bets rose again by 30 percent in December alone.

One Of The Best Performers Of The Day Today Is Tesla stock, Which Rose 6.77 Percent

The stock is currently priced at $130.69. Tesla’s stock has thus far outperformed the S&P 500 (S&P 500) so far. This is listed at 4,001 points. The S&P 500 is currently up 0.22 percent. Tesla shares started trading at $130.69 on Tuesday. The security’s daily high so far is $131.39. Tesla shares recorded their highest price to date on November 4, 2021. At the time, the paper cost $414.42, which is $283.73 more than it currently is.

Tesla Stock Is Watched By Several Analysts

US analyst firm Bernstein Research has left Tesla underperform with a price target of $150. The price cuts by the electric car manufacturer would have a massive impact on earnings, analyst Toni Sacconaghi wrote in a study published on Tuesday. He now expects earnings per share of just $3.80 in 2023 compared to the consensus of $4.99. In addition, price cuts in China did not seem to have brought about the hoped-for boost in demand. It is unclear whether further cuts will follow, Sacconaghi said.

The US investment bank Goldman Sachs has lowered the price target for Tesla from 205 to 200 US dollars, but left the rating on “buy”. The significant price cuts by the electric car maker at the turn of the year should reduce profits, which is why he is lowering his estimates, but drive sales development, analyst Mark Delaney wrote in a study available on Tuesday. In addition, Tesla has additional revenue opportunities through software updates and services.