Tesla Share Price Forecast November 2021 – Time to Buy TSLA?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Shares of American electric vehicle and clean energy company Tesla (NASDAQ: TSLA) are in the green today, closing on $1114 (as of October 29th, 19:59 EDT) with an uptrend of 3.43% at the time of writing. It has recently crossed the $1000 mark, taking the company’s market capitalization beyond $1 trillion. This has allowed the company to make headway into the elite club of mega-cap stocks which includes the likes of Apple, Microsoft, Amazon, and Alphabet.
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. 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)(987.72), Simple Moving Average (10) (967.61), Exponential Moving Average (20)(917.08), Simple Moving Average (20)( 883.51 ), Exponential Moving Average (30)(876.06) are indicating a buy action. On the other hand, oscillators are mixed, with some like Stochastic RSI Fast (3, 3, 14, 14)(98.32), Williams Percent Range (14)(−0.38), Bull Bear Power(265.77), and Ultimate Oscillator (7, 14, 28)(66.73) indicating a neutral action.
68% of all retail investor accounts lose money when trading CFDs with this provider.
Recent Developments
Tesla is the leader in the electric vehicle industry which is only going to get bigger in the years ahead due to the fear of climate change. Sky-high oil prices and worldwide fuel shortages have pushed customers more and more towards EVs in recent years which will only work in Tesla’s favour. For instance, Tesla has recently received a massive 1000,000 vehicle order from car rental company Hertz. While its self-driving technology isn’t perfect yet, it is still advanced which could push revenues even higher. However, the company did have to roll back its latest software update, which concerned many.
Tesla’s most recent Q3 results indicated good growth, with production up 67% year on year. Automotive revenue for the company increased by 58% over the same period. This resulted in a net income of over $2 billion for the latest quarter. However, Tesla was forced to limit production due to microchip shortage, which was eventually solved when CEO Elon Musk, developed a new software program allowing it to use different microchips.
The company targets to produce 20 million cars a year by 2030, which will be double the output of most other large automakers. It is also in the process of rolling out its intelligent driving software. This will be sold on a subscription basis which could prove vitally profitable than their vehicle manufacturing sector. It has delivered over 241,000 vehicles in Q3 2021, which further puts the company in a good position.
Should You Buy TSLA Shares?
Investors looking to buy TSLA should look at some risks, especially considering its valuation. It is trading 22 times sales currently which is quite high. Insiders have also been selling a significantly large amounts of shares after the recent share price rise. For instance, board member Ira Ehrenpreis sold more than $200 million worth of Tesla shares while Antonio Gracias, a former Tesla board member also filed his planned sale of $610 million worth of shares. There are also concerns that Tesla may not remain the leader in the electric vehicle as other companies like GM, Ford, Porsche, and Volkswagen are all catching up. Given the high valuation, investors can keep the shares on their watchlist. However, picking them up when they are over $1000 seems a risky move as there are better growth stocks currently in the market.
Buy TSLA at eToro with 0% Commission Now!
