Tesla Share Price Forecast November 2021 – Time to Buy TSLA?
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Shares of EV manufacturer Tesla (NASDAQ: TSLA) are in the green today, closing at $1136.99 as of November 29th, (22:56 EST). The shares increased as much as 5.3% before going back down to a 4.5% gain on Monday. The sharp gain can be attributed to the reports that confirm that the company is about to production at its new factory in Germany by next month.
Tesla – Technical Analysis
According to Tesla’s financial statement, the market cap of the company is at $1.11 trillion with assets worth $57.834 billion. Tesla’s revenue for 2020 was at $31.54 billion with a profit margin of 2.19% compared to $24.58 billion in 2019.
Moving averages such as Exponential Moving Average (10)(1107.33), Simple Moving Average (10) (1099.14), Exponential Moving Average (20)(1083.74), Simple Moving Average (20)( 1119.46), Exponential Moving Average (30)(1049.59) are indicating a buy action. On the other hand, oscillators are mixed, with some like Stochastic RSI Fast (3, 3, 14, 14)(33.63), Williams Percent Range (14)(−29.08), Bull Bear Power(38.58), and Ultimate Oscillator (7, 14, 28)(54.88) indicating a neutral action.
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Recent Developments
Tesla was founded by CEO Elon Musk, a visionary leader who focuses on growing his company in a growing niche such as the global EV market. As customers are getting attracted to EVs due to sky-high oil prices and worldwide fuel shortages, Tesla is well-positioned to handle this demand. The company has already received a 100,000 vehicle order from car rental company Hertz.
According to the company’s most recent Q3 results, the company’s production was up by 67% year on year and automative revenue increased by 58% over the same time. As a result, the company recorded net income of more than $2 billion in the latest quarter. Due to the worldwide microchip shortage, Tesla’s production also suffered. This problem was eventually solved by CEO Elon Musk, who developed a new software program that allowed his cars to use different microchips.
Perhaps the biggest piece of news coming out of the company are circulating reports that indicate that its new German factory is about to begin production. As reported by the German website Automobilwoche., Tesla is scheduled to begin production within the next few days as soon as it is granted environmental permits to begin production. The new Berlin-based factory is said to include new technology and a bigger production capacity and is slated to begin production of Tesla’s high-volume Model Y. as indicated by its management, Tesla is expected to grow deliveries by more than 50% year over year, with a 50% annualised growth, which requires its new factories to be operational at full capacity.
Should You Buy TSLA Shares?
Investors interested in TSLA should look at some risks, particularly its valuation. The company is trading 22 times sales, which is quite high. The recent price rise has also caused many insiders to sell their shares. This includes board member Ira Ehrenpreis sold more than $200 million worth of Tesla shares and Antonio Gracias, a former Tesla board member also filed his planned sale of $610 million worth of shares.
Many analysts have also expressed fear that Tesla may not remain the leader in EVs for much longer as companies like GM, Ford, Porsche, and Volkswagen are fighting to Tesla’s place. Considering this, and the stock’s current valuation now is not the time to add TSLA shares to your portfolio. Which should rather be closely watched for the time being.
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