Analyzing Tesla Stock – Is the Stock Going Up Or Down?
There is a lot of noise and concern in the stock market today with respect to Tesla Motors. Many have concerns that the company is too new to be given the time it needs to get established. That’s a valid concern, especially considering that this is a very high-risk business.
However, I’d like to focus on Tesla’s financials for this reason. The company has been in operation since the late nineteen eighties and has not had a single loss. Indeed, there were tens of millions of dollars in operating profits.
In fact, in the past two quarters, the stock price has actually increased. As a result, I am going to consider going long when the share price reaches around $320. This makes a lot of sense because of the company’s history and its current state.
The historical pattern we see is that during periods of rising stock prices, the shares start to move up to almost an all time high before heading back down. As you can imagine, if the price is going to go back down, that means it will need to sell at a significant discount. And it did, for a brief period of time.
What about the company’s outlook? It seems to me that a lot of investors are concerned about the tremendous cost of the vehicle that is in the works. There is also a lot of media attention with regard to the state of California and its ongoing efforts to regulate the creation of cars and trucks.
With all of these things in mind, I don’t see any reason why the company should not be able to complete the assembly of the new vehicle and be on the road in the next couple of years. The range for the stock is currently between around seventy and eighty dollars.
In other words, there is no reason for investors to be overly concerned about negative comments about the company from observers in the media. The share price is now above the fifty dollar level. So for me, there are plenty of reasons to get in early and hang on.
Well, I’ll look forward to your comments. Please feel free to visit my website to learn more about the companies I work with.
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