Tesla Inc. Share Forecast October 2021 – Time to Buy TSLA?
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Shares of the renowned American electric vehicle company Tesla Inc. (NASDAQ: TSLA) are in the green today, after closing at $1077.04 on October 28th (19:59 EDT). Tesla saw its share rise by more than 3% (3.78%, to be precise) on Thursday. The share’s recent upward spike could be more than the hype, according to analysts’ rising bullish sentiment. Even so, despite competitors’ comparatively modest development into EVs, a rising number of experts predict Tesla’s advantage in the fast-growing electric-vehicle industry might extend in the near future.
Tesla – Technical Analysis
As per the financial statement from Tesla, the market cap of the EV Company is at $1.082 trillion with total assets worth $57.834 billion. Total revenue for 2020 was $31.54 billion, compared to $24.58 billion a year ago.
Moving averages for TSLA including Exponential Moving Average (10)(959.66), Simple Moving Average (10)(940.51), Exponential Moving Average (20)(896.35), Simple Moving Average (20)(866.57) are pointing towards a buying action. Oscillators such as Relative Strength Index (14)(91.02), Stochastic %K (14, 3, 3)(83.89), Average Directional Index (14)(50.46), Awesome Oscillator(192.00) are neutral, on the other hand.
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Recent Developments
Mark Delaney, a Goldman Sachs analyst, recently increased his price target for the business from $905 to $1,125 for the next 12 months. While a price objective of $1,125 would only indicate an 8% increase over where the share was trading on Wednesday, that would still be a remarkable milestone. And besides, shares were trading near $600 just 6 months ago and were about $800 only a month earlier. Delaney’s price target increase on Wednesday reflects his belief in robust demand compared to supply, despite the company’s rapid expansion of production capacity.
Delaney highlighted that Hertz’s recent statement that it will purchase 100,000 Tesla vehicles by the end of the next year is just one indication of how the organization is ready to maintain a positive demand trajectory. Furthermore, as Tesla’s order volume grows, Delaney believes the company will profit from increased margins.
According to CFO Zachary Kirkhorn, the business’s once-struggling deliveries increased by 20% quarter over quarter and by 70% year over year in Q3. According to experts, the Tesla we witness now is a pre-COVID, under $100 billion Tesla; the Tesla we will probably observe in the coming 12 to 18 months will emphasise step-changes in production, reduction in costs, capacity growth, model selection, and product offerings, all while stressing the potential of the Trillion-Dollar Tesla.
Tesla is, indeed, investing considerably in growing its manufacturing capability, as the reports claim. This year, the manufacturer plans to open two new facilities, one in Berlin and the other in Texas. Furthermore, Tesla is still scaling up manufacturing capacity at its Shanghai facility and reckons there is still scope for growth at its Fremont, California plant.
Should You Buy Tesla Shares?
Tesla’s incredibly high valuation, which gives the company a price-to-earnings ratio of almost 350, implies the electric vehicle manufacturer will have to deliver impressive results in the fourth quarter and beyond 2022. While it’s hard to deny Tesla’s financial performance, there are several compelling reasons to feel the company’s shares are overvalued.
However, Tesla has spent the last ten years consistently exceeding expectations. And, while other manufacturers struggle to come to terms with supply-chain limitations, the business’s recent sales spike suggests that it may be expanding its dominance in electric vehicle tech. This makes Tesla potentially challenging for the title of the world’s most efficient and competent automaker. Following a massive run-up and considering the near-perfection built into the share, investors would be advised to consider it as a hold rather than a buy.
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