Verified Document

Tesla Stock Analysis And Recommendation Essay

Related Topics:

Fortune 500 Company: TSLA Ticker: TSLA

Current Stock Price: $290.71

Market Cap: 49.119B

P/E: 147.58

Dividend/Yield: N/A;N/A

Enterprise Value: 4.93

Beta: 0.96

Stock Split: No

Closing price last five days: $291.21, $287.71, $293.50, $300.10, $290.24

52 week high: $389.61

Book Value per Share: $11.58

Analysts’ Ratings: 4 strong buy, 4 buy, 8 hold, 6 underperform

Target Price: Low of $180 to High of $470, with the average at $317.04

Avg. revenue estimate for next year: 26.85B

Significant news: Tesla is ramping up Model 3 production; Tesla is working on a semi

Buy or Sell TSLA? Recommendation: SELL

I would not recommend investing in this stock. TSLA is currently the most shorted stock on the market: investors are bearish on Tesla, as the CEO Elon Musk has turned it into a cult stock with an unjustifiable P/E and a lot more empty promises at his back than actual delivery. While TSLA has made enough in revenues to make it to the Fortune 500, the company has still yet to make an actual profit. The real story of Tesla is what the company does not say: Tesla...

TSLA’s CEO has a history of making extravagant predictions via social media but has so far shown little ability to back these up. The company’s vision and mission statement have appealed to investors and consumers who believe the company will be a leader in the EV market—but the reality is that TSLA’s production is woefully slow and its competitors will be able to take the lead in the EV market before TSLA ever overcomes its difficulties. TSLA is a cult stock that resembles a pink sheet penny stock in a lot of ways—from the cult of personality surrounding its CEO, to its aura as a speculative play, to its unbelievable promises that have fueled its exponential run-up over the past few years. Reality is about to come back to bite TSLA hard—and that is why hedge funds are shorting it.
The relationship between the value of the stock and the P/E represents the absurdity at which the company is presently priced. With a forward P/E of nearly 150, TSLA is trading at around 6x the average P/E…

Cite this Document:
Copy Bibliography Citation

Related Documents

Tesla
Words: 3438 Length: 11 Document Type: Research Paper

Tesla Case Analysis General Environment/Industry Analysis The automobile industry is changing quickly with more and more competitors entering into the EV market. Jaguar is introducing its I-Pace, a premium EV with a base model price under $70k. Audi is introducing its E-Tron Quattro E-SUV this year and an E-Tron Sportback next year. Porsche is bringing its Mission E Cross as its second EV. Mercedes plans a 2018 EQC Electric SUV. And then

Discussion of Tesla SWOT Analysis
Words: 1267 Length: 4 Document Type: SWOT Analysis

Tesla AnalysisSWOT AnalysisStrengths� Strong brand equity around the world� Strong culture of innovation� Strong and dynamic leadership team� Economies of scale� Access to low cost capital sources in both the debt and equity markets.� Government policies cater towards productionWeaknesses� Potential lack of focus with the acquisition of Solar City.� Upfront costs relative to other transportation choices is still high� Highly capital-intensive business which requires large amounts of continued investment thereby

Financial Analysis of Tesla Motors
Words: 4155 Length: 13 Document Type: Research Paper

Financial Research Report The company that I have selected to study is Tesla Motors. The reason for studying this company is that my investment advice practice has received a lot of calls about this company in particular. This is a company that has generated a tremendous amount of "bullish buzz" this year (Brumley, 2015). Opinions among the analyst community are decidedly mixed about Tesla stock. Some analysts view the stock from

Tesla Inc. Corporate Strategy and Competitive Advantage
Words: 3130 Length: 10 Document Type: Essay

Comprehensive Analysis of a Fortune 500 Company: Tesla, Inc.—Corporate Strategy and Competitive Advantage Introduction: Background Tesla, Inc. was launched in 2003 in California as a niche market luxury carmaker that specialized in electric vehicles (EV). The Tesla Roadster was its first product. The Roadster was a high-end EV and not a mass market car. Today, Tesla offers the much more affordable Tesla Model 3, which is a mass-market EV designed for the

Tesla and the Global Market
Words: 3582 Length: 12 Document Type: Essay

Global Company Report: Tesla, Inc. Introduction: Summary of the Business and Its Industry Tesla, Inc. was launched in 2003 in California as a niche market luxury carmaker that specialized in electric vehicles (EV). The Tesla Roadster was its first product. The Roadster was a high-end EV and not a mass market car. Today, Tesla offers the much more affordable Tesla Model 3, which is a mass-market EV designed for the common man.

Tesla Strategic Business
Words: 2020 Length: 7 Document Type: Capstone Project

Part I Executive Summary This paper focuses on the problem facing Tesla, Inc. and identifies how Porter’s Five Forces model can be applied to the company. It provides an examination of the company’s SWOT and discusses strategic alternatives and recommendations. It assesses that Tesla must focus on production and the recruitment and retention of talent to get production where it needs to be. Background of the Business Tesla, Inc. is a car manufacture in

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now