2023/01/31 (160.023) Technical Analysis

TESLA Share Reached Price Target Of 166.71 USD
– A New One For Today Has Already Been Formulated At 202 USD

Since the beginning of the year, Tesla shares have risen by around 50 percent. Despite everything, the paper is still traded much cheaper than last year. For Berenberg analyst Adrian Yanoshik, the fall in prices is reason enough to upgrade the car manufacturer’s rating from “hold” to “buy”.

In his industry study on Monday, however, the expert also lowered his price target by $55 to $200. A weakening of car demand is increasingly likely in 2023, according to Yanoshik. Because of this, and because of rising costs, he cut his earnings expectations for this year’s sector. Meanwhile, the expert believes that concerns about Tesla’s pricing are exaggerated. The carmaker’s price cuts showed the group’s cost leadership.

With his assessment of Tesla stock, Yanoshik is roughly in line with his peers. The analyst consensus is $193, according to Bloomberg. Of the 46 analysts covering the paper, 28 recommend buying the share and 12 recommend holding it. The vote is “Sell” six times.

The analysts only give Tesla limited potential of around nine percent. Given the continued high valuation, the much-discussed impact of price cuts and the unrest surrounding CEO Elon Musk, caution is warranted. However, since the chart picture has brightened significantly as a result of the strong Q4 figures, investors who are already invested are letting their profits run.

Chanos On Tesla And BYD: “The Bears Were Wrong”

Well-known hedge fund manager Jim Chanos sees further risks for the markets and downside potential for Tesla. There are now alternatives like Nio and BYD.

Jim Chanos not only goes long, but also shorts selected stocks. He became known for his timely warning of the Enron bankruptcy in 2001 and his successful short sale in Wirecard.

Now CNBC has asked him about developments in the markets. He thinks it’s possible that US corporate profits may have peaked first, which would mean a “long way down” for stocks. The average valuations are still not favorable because a “Goldilocks scenario” (moderate growth, low inflation) is being priced in.

He is also sticking to his Tesla short. He was skeptical five years ago while Tesla stock was bullish. Now he admits: “The bears were wrong about the competition.” Competitive vehicles have been in short supply. But now the time has come: “The competition is there and is getting stronger.” China in particular is of great importance for Tesla’s profits, but this is exactly where players like BYD and Nio make life difficult for the US carmaker and “gain massive market shares”. . “We think almost all of Tesla’s profits so far have been made in China,” Chanos said.

He finds it “interesting” how the cops’ narrative has changed. In the fall, the argument was still that Tesla was the only car company growing at 40 to 50 percent. Now the bull case seems to be that Tesla is lowering prices, but it’s even more a shame for the others, which amuses him.

To which I only have to add that the bears were (not yet) wrong in this year 2023! Because in the last year 2022, the bears were absolutely right in relation to the TESLA share! And that was also the reason why I decided to buy the TESLA share at the beginning of 2023 as a highly speculative supplement. And please only as a supplement to the three other long 4XSetUps in the EURUSD pair, and or also DOW Future and DAX Future. Because trading the TESLA share alone, without a depot management strategy, let alone a tactic, is a gamble.

What’s Next After The 70 Percent Move? That’s What The Analysts Say!

Tesla stock put in a strong performance following fourth-quarter earnings. Plus 70 percent in January 2023 alone is a word! Sure, compared to the fall from over 400 to almost 100 USD, it’s still a bitter loss! But attacking $200 in just four weeks? This can not go well! How is the stock doing now?

Fourth quarter numbers weren’t a blip to the upside, broadly in line with expectations. However, according to a message from Tesla to the US Securities and Exchange Commission, it was positive that the company intends to invest around seven to nine billion dollars in expanding production in 2024 and 2025. The total is around one billion more than previous figures. The reason for this could be the construction of a new giga factory in Mexico.
Basically good news from the electric car pioneer. However, will that be enough to justify a market cap of $550 billion, a price-to-sales ratio of 5.5 and a 2023 P/E of 42? I still say no! As with the purchase at the beginning of the year! Nevertheless, we remain with our highly speculative 4XSetUps Trading Capability, in the context of our conservative EURUSD long 4XSetUps – in line with the DOW future and/or also the DAX future.

Morgan Stanley analysts, led by Adam Jonas, again ranked Tesla as a “top pick” with a price target of $220 in a Jan. 26 note.
However, Jonas warned that Tesla could test “new lows” in the first half of the year before breaching the $220 price target within 12 months.

Garrett Nelson, senior equities analyst at CFRA Research, predicts Tesla stock will have a “strong upleg” in 2023 and says the risk/reward trade-off is extremely compelling at current levels.”

Investors should keep an eye on Investor Day on March 1st. On this day, perhaps, new impulses could possibly be able to. In all probability, the new vehicle platform from Tesla will be presented at this event. A small car in the price segment between 25,000 and 30,000 dollars could then be built on this, which could attract new groups of buyers and double the sales volume.

VW Boss Blume Does Bot Want A Price War With Competitor Tesla

Volkswagen boss Oliver Blume does not want to react to the latest price cuts by competitor Tesla with price reductions for his own electric vehicles. VW will not engage in a price war with its American competitor, Blume told the “Frankfurter Allgemeine Sonntagszeitung”.

“We have a clear pricing strategy and rely on reliability. We trust in the strength of our products and brands,” said Blume. Volkswagen wants to be “a leading global” supplier of electric cars, but this should be achieved through “profitable growth”.

The electric car pioneer Tesla had initially reduced prices significantly in China, Europe and the USA in view of the tougher competition.

Basic Informations About Our TESLA long 4XSetUp
Basic Technical Analysis News About Our TESLA long 4XSetUp
Basic Opinions Of Foreign Analysts About Our TESLA long 4XSetUp

A look at the discussion on social media shows the following picture: In the last few days, market participants have generally had a negative attitude towards Tesla. There were a total of six positive and seven negative days. One day there was no clear direction. In contrast, the latest news about the company over the past day or two has been mostly positive. Based on our sentiment analysis, Tesla is therefore given a “Hold” rating. The optimization programs calculated several confirmed trading signals at the same time, most of which pointed in the “buy” direction. The accumulation of buy signals also leads to a “buy” rating for this criterion. Overall, Tesla receives a “hold” rating from the editors for investor sentiment.

From the last 200 trading days, the Tesla share averaged $232.97 for the closing price. The closing price on the last trading day was USD 177.9 (-23.64 percent difference) and we therefore assign a “Sell” rating from a technical point of view. In addition to the 200-day moving average, the 50-day moving average is also often analyzed as part of the chart technique. For this value ($151.27), the most recent close is above the moving average (+17.6 percent). In this case, the Tesla share is rated differently, namely a “buy” rating. Overall, Tesla receives a “Hold” rating for the simple chart technique.

Analysts from research departments have given Tesla shares the following overall ratings over the past twelve months: 17 buy, 8 hold and 3 sell ratings. From this we derive a “buy” for the long-term classification. On a short-term basis, based on the available studies of the past month, the share is considered a “buy”. During this period, 9 analysts rated the stock as a buy, 4 as a hold and 1 as a sell. The average price target for Tesla shares is again USD 269.53. Since the last closing price was USD 177.9, this results in an expected price development of 51.51 percent. This is linked to the rating “Buy”. Thus, the rating of analysts for the Tesla share results in an overall rating of “Buy”.

The Market Celebrate The Latest Tesla News

With double-digit price gains at times, Tesla stock is one of the biggest winners on the US stock exchanges today. Since the turn of the year, the price has risen by almost 30 percent. The positive development today was triggered by the electric car manufacturer’s business figures published yesterday after the market closed.

Although Tesla was not completely convincing, the market participants seem to be concentrating on the positive things at the moment. With a 51 percent increase in sales, the company achieved a profit increase of 128 percent last year. On an adjusted basis, Tesla generated earnings of $1.19 per share, ahead of expectations. The goal of wanting to deliver a total of around 1.8 million cars in the current year was below previous estimates. Especially after the recently announced price reductions, analysts had expected a higher number here. However, Tesla took the air out of the critics’ sails by reporting the strongest demand since the beginning of the year in the company’s history. In the longer term, the Group is still aiming for average annual growth in deliveries of 50 percent. In 2022, however, it was only 40 percent.