Discover comprehensive answers to frequently asked questions about Tesla stock. Learn about ticker symbols, key support levels, valuation metrics, liquidity, solvency, investment considerations, and more. Perfect for investors seeking detailed insights into Tesla’s stock performance and financial health.
Tesla, Inc. (TSLA) has become a household name, not only as a leader in electric vehicles but also as a significant player in the stock market. Since its initial public offering (IPO) in 2010, Tesla’s stock has captured the attention of investors worldwide, known for its remarkable growth and volatility. Tesla’s mission to accelerate the world’s transition to sustainable energy has driven innovation across various industries, from automotive to energy storage solutions. As a result, Tesla’s stock performance has often been a reflection of its ambitious goals, technological advancements, and market influence.
In this introduction, we will explore the journey of Tesla stock, its historical milestones, and the factors that make it a unique investment opportunity. Whether you’re a seasoned investor or new to the stock market, understanding Tesla’s stock dynamics is crucial for making informed investment decisions.
Table of Contents
Fundamental analysis of Tesla Stock | |||||
Ratio | LTM (Last Twelve Months) | September 2023 | September 2022 | September 2021 | September 2020 |
Valuation Ratio | |||||
Price to Earnings Ratio (PE) | 41.72 | 52.58 | 30.64 | 188.6 | 913.1 |
Price to Book Ratio | 8.848 | 12.59 | 8.625 | 34.52 | 29.62 |
Price Earnings to Growth Ratio | 0.987 | 2.977 | 0.267 | 0.291 | -4.904 |
EV to EBITDA | 41.15 | 51.68 | 20.55 | 107.4 | 154.1 |
Liquidity Ratio | |||||
Current Ratio | 1.716 | 1.726 | 1.532 | 1.375 | 1.875 |
Quick Ratio | 1.056 | 1.141 | 0.941 | 0.996 | 1.493 |
Solvency Ratio | |||||
Debt to Equity Ratio | 0.092 | 0.081 | 0.069 | 0.226 | 0.528 |
Interest Coverage Ratio | 36.44 | 56.99 | 71.5 | 18.02 | 2.666 |
Profitability Ratio | |||||
Gross Profit Margin | 17.78% | 18.25% | 25.6% | 25.28% | 21.02% |
Net Profit Margin | 14.41% | 15.5% | 15.45% | 10.26% | 2.29% |
Return on Equity (ROE) | 23.58% | 23.95% | 28.15% | 18.3% | 3.24% |
Return on Invested Capital | 17.03% | 21.72% | 31.82% | 23.94% | 8.04% |
Efficient Ratio | |||||
Inventory Turnover Ratio | 4.859 | 5.806 | 4.721 | 6.986 | 6.073 |
Receivables Turnover Ratio | 24.37 | 26.18 | 27.6 | 28.14 | 16.72 |
This data table provides a fundamental analysis of Tesla’s stock using various financial ratios for the past four years (September 2020 – September 2023). Here’s a breakdown of the key insights:
Valuation Ratios
Price-to-earnings ratio (PE Ratio):
This ratio indicates how much investors are willing to pay for each dollar of a company’s earnings. Tesla’s PE ratio has fluctuated significantly, decreasing from a high of 913.1 in 2020 to a more reasonable 41.72 in 2023. This suggests a potential correction in the stock price after a period of high valuation.
Price-to-book ratio (P/B Ratio):
This ratio compares the market value of a company’s stock to its book value (net assets). Tesla’s P/B ratio has also decreased over time, indicating a potentially more realistic valuation compared to its book value.
Profitability Ratios
Gross Profit Margin:
This ratio measures the percentage of revenue remaining after accounting for the cost of goods sold. Tesla’s gross profit margin has remained relatively consistent, hovering around 17-25%. This indicates a decent ability to generate profit from product sales.
Net Profit Margin:
This ratio reflects the percentage of revenue remaining after accounting for all expenses. Tesla’s net profit margin has been volatile, reaching a high of 15.5% in 2022 but dropping to 14.41% in 2023. While still positive, it suggests potential challenges in managing expenses.
Return on Equity (ROE) and Return on Invested Capital (ROIC):
These ratios measure how effectively a company generates profits from shareholder equity (ROE) and total invested capital (ROIC). Tesla’s ROE and ROIC have decreased from highs in 2021 and 2022, but remain positive. This indicates a decent ability to generate returns on investments.
Liquidity Ratios
Current Ratio and Quick Ratio:
These ratios measure a company’s ability to meet short-term obligations with its current assets. Tesla’s current and quick ratios have remained relatively stable, exceeding 1 throughout the period. This suggests a good short-term liquidity position.
Solvency Ratios
Debt-to-Equity Ratio:
This ratio measures the proportion of debt used to finance a company’s operations compared to shareholder equity. Tesla’s debt-to-equity ratio has increased from a low of 0.069 in 2021 to 0.092 in 2023. While still relatively low compared to some industries, this indicates a growing reliance on debt financing.
Interest Coverage Ratio:
This ratio measures a company’s ability to service its debt obligations with its earnings before interest and taxes (EBIT). Tesla’s interest coverage ratio has decreased significantly, dropping from 71.5 in 2021 to 36.44 in 2023. This suggests a potential concern regarding the company’s ability to comfortably cover its debt payments with current earnings.
Efficiency Ratios
Inventory Turnover Ratio:
This ratio measures how efficiently a company sells its inventory. Tesla’s inventory turnover ratio has fluctuated but remains above 4, indicating a relatively fast-moving inventory.
Receivables Turnover Ratio:
This ratio measures how efficiently a company collects payments from customers on credit. Tesla’s receivables turnover ratio has decreased from 28.14 in 2022 to 24.37 in 2023. This could indicate a potential slowdown in collections or an increase in credit sales.
Overall Analysis:
Tesla’s financial health exhibits a mix of positive and concerning signs. The company boasts decent profitability margins and liquidity, along with a fast-moving inventory. However, the recent decrease in valuation ratios, net profit margin, ROE, and interest coverage ratio suggest potential challenges in maintaining high growth rates and managing expenses effectively. Additionally, the rising debt-to-equity ratio and lower receivables turnover ratio require monitoring.
Technical Analysis of Tesla Stock
Technical analysis of Tesla Stock involves evaluating price movements and trading volumes to forecast future price movements. Technical analysis depends on charts and statistical indicators. analysts use various techniques, such as trend analysis, chart patterns, and technical indicators like moving averages or relative strength index (RSI), to identify potential buying or selling opportunities for Tesla Stock. The main goal of technical analysis of Tesla Stock share price is to predict future price movements based on historical data and market psychology, helping investors make informed decisions about when to enter or exit trades. So, bellow we are explaining Various techniques as of 31st May 2024 for technical analysis of Tesla Stock.
Price action
Price action and price level of Tesla Stock | |||
Price action | Daily Timeframe | Weekly Timeframe | Monthly Timeframe |
Candlestick | Doji Candlestick. | Doji Candlestick. | Doji Candlestick. |
Chart Pattern | Symmetric triangle pattern | Falling Wedge Pattern | Falling Wedge Pattern |
Price Support Level | 165-170 | 140-145, strong support zone for weekly candlestick | 110-120 |
Price Level | 178.79 is Current price of Tesla Stock | 52 weeks High 299.29 | 52 weeks low 139.01 |
Tesla, Inc. (TSLA) is one of the most followed and traded stocks in the market. As of May 31, 2024, Tesla’s stock price demonstrates significant technical patterns and key support levels across different timeframes. In this analysis, we will break down the price action of Tesla stock on daily, weekly, and monthly charts, interpreting the candlestick formations, chart patterns, and critical price levels that can guide investors and traders.
Daily Timeframe Analysis
Candlestick Pattern
In the daily timeframe, Tesla stock is displaying a Doji candlestick pattern. The Doji candlestick indicates indecision in the market, where the opening and closing prices are nearly identical, reflecting a balance between buyers and sellers. This pattern suggests that the stock is consolidating within a range, specifically between $140 and $200. Such consolidation phases often precede significant price movements, as they represent a period where the market is gathering momentum for the next move.
Chart Pattern
The daily chart reveals a symmetric triangle pattern. This pattern typically forms during periods of consolidation before the price resumes its previous trend. Tesla’s stock price has corrected by almost 75% from its high, indicating that it has experienced substantial downward pressure but is now potentially poised for a breakout. The symmetric triangle pattern suggests that once the stock price breaks out of this formation, it could see a significant move in the direction of the breakout.
Price Support Level
The key support level in the daily timeframe is identified between $165 and $170. This range acts as a crucial buffer zone, where buyers are likely to step in to prevent the stock from falling further. If Tesla’s stock price drops to this level, it may find strong buying interest, leading to a potential reversal or stabilization.
Weekly Timeframe Analysis
Candlestick Pattern
The weekly timeframe also shows a Doji candlestick pattern. This pattern has been forming consistently over the last week, reinforcing the notion of market indecision and consolidation. Notably, on April 29, 2024, Tesla’s stock price broke out of a pattern, suggesting a significant shift in market sentiment.
Chart Pattern
On the weekly chart, Tesla stock is forming a Falling Wedge pattern. A falling wedge is generally considered a bullish reversal pattern, indicating that although the price has been declining, the downtrend is losing momentum, and a bullish reversal could be imminent. Tesla’s stock has crossed the resistance level at $170 and is holding above it, confirming the activation of this bullish pattern.
Price Support Level
The strong support zone for the weekly candlestick is identified between $140 and $145. This support range is critical for maintaining the bullish outlook of the falling wedge pattern. A breakdown below this level could invalidate the bullish reversal scenario.
Monthly Timeframe Analysis
Candlestick Pattern
The monthly timeframe also features a Doji candlestick. This recurring pattern across multiple timeframes indicates prolonged indecision and consolidation. The presence of a Doji candlestick for the last month signifies that despite the fluctuating market conditions, Tesla’s stock has found good support at $160.
Chart Pattern
The monthly chart pattern also aligns with the Falling Wedge pattern observed in the weekly timeframe. This consistency across timeframes strengthens the bullish reversal signal, suggesting that Tesla’s stock is building a strong foundation for a potential upward move.
Price Support Level
For the monthly timeframe, the critical support level is identified between $110 and $120. This broader support range underscores the importance of maintaining stability above these levels to sustain any bullish momentum.
Price Levels
As of May 31, 2024, the current price of Tesla stock is $178.79. This price places it within the identified consolidation range, suggesting that it is nearing a critical decision point where a breakout or breakdown could occur.
The 52-week high for Tesla stock is $299.29, and the 52-week low is $139.01. The current price of $178.79 is closer to the lower end of this range, suggesting that the stock is trading at relatively lower levels compared to its highs of the past year.
Conclusion
Tesla stock’s price action as of May 31, 2024, reveals a fascinating interplay of technical patterns and critical support levels across different timeframes. The consistent appearance of the Doji candlestick pattern in daily, weekly, and monthly charts highlights a period of consolidation and market indecision. This pattern, coupled with the symmetric triangle and falling wedge patterns, suggests that Tesla’s stock is at a crucial juncture where significant price movements could occur.
Key support levels at $165-$170 (daily), $140-$145 (weekly), and $110-$120 (monthly) provide critical price zones that investors should watch closely. These levels can offer potential entry points for long positions or signals for caution if breached. The current price of $178.79 positions Tesla stock near these vital support zones, indicating that the stock is potentially gearing up for a decisive move.
Investors and traders should monitor these technical patterns and support levels to make informed decisions. Understanding Tesla’s stock price dynamics through these analyses can provide valuable insights into potential future movements, aiding in strategic investment planning.
FAQs
- What is the ticker symbol for Tesla stock?
The ticker symbol for Tesla stock is TSLA.
- On which stock exchanges is Tesla traded?
Tesla is traded on the NASDAQ stock exchange.
- What is the current price of Tesla stock?
As of May 31, 2024, the current price of Tesla stock is $178.79. Prices are subject to change based on market conditions.
- What are the key support levels for Tesla stock?
Key support levels for Tesla stock are:
Daily timeframe: $165 – $170
Weekly timeframe: $140 – $145
Monthly timeframe: $110 – $120
- What is the 52-week high and low for Tesla stock?
The 52-week high for Tesla stock is $299.29, and the 52-week low is $139.01.
- What major chart patterns are visible in Tesla’s stock analysis?
The major chart patterns currently visible in Tesla’s stock analysis include:
Symmetric Triangle Pattern on the daily timeframe
Falling Wedge Pattern on both weekly and monthly timeframes
- What candlestick pattern is Tesla stock forming?
Tesla stock is forming a Doji candlestick pattern on the daily, weekly, and monthly timeframes, indicating market indecision and consolidation.
- What is the Price to Earnings (PE) ratio for Tesla stock?
The Price to Earnings (PE) ratio for Tesla stock as of the Last Twelve Months (LTM) is 41.72.
- What does the Price to Book (P/B) ratio indicate for Tesla?
The Price to Book (P/B) ratio for Tesla stock is 8.848, indicating that Tesla’s market value is 8.848 times its book value.
- How is Tesla’s liquidity position?
Tesla’s liquidity ratios are:
Current Ratio: 1.716
Quick Ratio: 1.056
These ratios suggest that Tesla has adequate liquidity to cover its short-term liabilities.
- What are Tesla’s profitability ratios?
Key profitability ratios for Tesla include:
Gross Profit Margin: 17.78%
Net Profit Margin: 14.41%
Return on Equity (ROE): 23.58%
Return on Invested Capital (ROIC): 17.03%
- How is Tesla’s solvency?
Tesla’s solvency ratios are:
Debt to Equity Ratio: 0.092
Interest Coverage Ratio: 36.44
These ratios indicate a strong solvency position with low debt relative to equity and high interest coverage.
- What are Tesla’s efficiency ratios?
Key efficiency ratios for Tesla include:
Inventory Turnover Ratio: 4.859
Receivables Turnover Ratio: 24.37
- What is the EV to EBITDA ratio for Tesla?
The EV to EBITDA ratio for Tesla is 41.15. This ratio measures the company’s enterprise value relative to its earnings before interest, taxes, depreciation, and amortization.
- Is Tesla considered a good investment?
Whether Tesla is a good investment depends on various factors, including individual financial goals, market conditions, and risk tolerance. Tesla’s strong financial ratios, innovative business model, and market position make it an attractive option for many investors, but it’s important to conduct thorough research or consult a financial advisor.
- How can I buy Tesla stock?
You can buy Tesla stock through any brokerage account. Simply search for the ticker symbol TSLA and place a buy order for the number of shares you wish to purchase.
- Does Tesla pay dividends?
As of now, Tesla does not pay dividends. The company reinvests its earnings into growth and expansion.
- What factors influence Tesla’s stock price?
Several factors influence Tesla’s stock price, including:
Company performance and earnings reports
Market conditions and investor sentiment
Technological advancements and product launches
Regulatory changes and environmental policies
Competitor performance and industry trends
- What are the risks associated with investing in Tesla stock?
Risks associated with investing in Tesla stock include:
High volatility and significant price fluctuations
Dependence on technological innovation and market acceptance
Regulatory and environmental compliance costs
Competitive pressures from other automakers and tech companies
Macroeconomic factors affecting the automotive industry
- Where can I find more information about Tesla’s financial performance?
You can find more information about Tesla’s financial performance on the company’s investor relations website, financial news portals, and regulatory filings such as the SEC’s EDGAR database.
By understanding these FAQs, investors can gain a better grasp of Tesla’s stock performance, key financial metrics, and the factors influencing its price. This knowledge can help make informed investment decisions.
