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On June 21, 2023, Tesla's technical indicators show mixed sentiment, with an overbought RSI14 and bullish MACD; fundamental analysis suggests a rich valuation but strong growth prospects and expansion efforts, and a stock prediction and evaluation recommend a Hold strategy and cautious approach.
Technical Analysis
Tesla, Inc. (TSLA) closed at 259.46 USD on June 21, 2023, down by 14.99 (-5.46%). The stock's trading range for the day was between 257.78 and 276.98, with the 52-week range being 101.81 to 314.67. The stock's market cap stood at approximately 822.36 billion USD, and the traded volume on June 21 was 209.23 million, higher than its average volume of 134.80 million.
The technical indicators for TSLA show a mixed sentiment. The stock's Relative Strength Index (RSI14) of 80 signals that it is overbought, while the Moving Average Convergence Divergence (MACD) of 26.29 (3-month) indicates a bullish trend. Tesla's 50-day moving average is 191.85 and its 200-day moving average is 195.79, both lower than the current stock price.
Fundamental Analysis
Tesla, Inc. has a price-to-earnings ratio (PE) of 74.77, indicating a rich valuation given the earnings per share (EPS) of 3.47. However, the company is rapidly growing its presence in key markets such as India, as noted in a recent news article discussing Apple and Tesla's investments in the region.
The company is expected to announce its earnings on July 18, 2023. The discounted cash flow (DCF) model suggests a value of 265.84, which is slightly higher than the stock's current price. Analyst forecasts for TSLA vary widely, with a high target of 526.67 and a low target of 130, while the consensus target is 283.51 and the median target is 260.
Recent news articles highlight Tesla's expansion efforts, such as the deals signed with Ford, GM, and Rivian to join its Supercharger network. However, some analysts have downgraded the stock, warning investors to move to the "sidelines" due to the recent rally that has seemingly ignored headwinds such as elevated interest rates and moderating earnings.
Stock Prediction and Evaluation
Based on the current technical and fundamental outlook, as well as recent news and developments, we predict TSLA's stock price to stand around 262-265 USD on June 22, 2023. For the upcoming week, we expect the stock to move towards 270-275 USD, potentially influenced by external factors such as market sentiment and news updates.
Our final evaluation of Tesla, Inc. (TSLA) stands as a "Hold" recommendation. The stock appears to be fairly valued according to the DCF model and lower target estimates, while the company's strong growth prospects and expansion efforts are tempered by concerns over market headwinds and a potentially overbought stock. Despite the recent downgrade by Barclays and the warning to move to the sidelines, we believe that investors should take a cautious approach to the stock, keeping an eye on the upcoming earnings announcement and considering the stock's performance against broader market trends and external factors.
