Sign InTesla stock falls 6% on June 26, but short-term positive momentum predicted.
Summary
On June 26, 2023, Tesla's stock price dropped by 6.06%, but based on technical and fundamental analyses, the stock may experience short-term positive momentum with a median target of $260 and a high target of $526.67, although it should be considered a Hold due to potential overvaluation based on its high PE ratio.
Introduction
Tesla, Inc. (NASDAQ: TSLA) experienced a decline in its stock price, closing at $241.05 on June 26, 2023. The price dropped by $15.55 (-6.06%). This report will provide a detailed analysis of the stock and its recent performance to generate informed predictions and evaluations.
Technical Analysis
The stock's recent low and high prices were $240.70 and $258.36, respectively. The Relative Strength Index (RSI14) at 61 indicates a near-neutral level which signals neither overbought nor oversold conditions. The 50-day moving average of $196.42 and 200-day moving average of $195.58 imply that the stock may have a bullish trend in the short-term. With a 3-month MACD of 29.79, this indicates positive momentum.
Fundamental Analysis
Tesla's earnings per share (EPS) stand at $3.36, resulting in a price-to-earnings (PE) ratio of 71.74. This figure may indicate that the stock is overvalued compared to the broader market. The company's market capitalization is $764 billion, supported by 3.17 billion outstanding shares.
Analyst target projections range from a high of $526.67 to a low of $130. The consensus target is $284.89, and the median target is $260.
Recent News
Various news stories have impacted Tesla's stock price. For example, negative comments from Goldman Sachs led to a downgrade of the stock, despite the analyst raising the price target. Additionally, the global EV market's rapid growth could potentially benefit Tesla as it's a dominant player in the industry.
Stock Price Predictions
Based on the technical and fundamental analysis, the stock price could experience short-term positive momentum. For the next trading day on June 27, 2023, it may hover around the current price or experience a slight increase. In the upcoming week, the stock price might test the resistance near its year high of $314.67, but it's unlikely to surpass this level in the near term.
Final Evaluation
Taking into account the technical indicators, analyst targets, and recent news, the stock should be considered as a Hold. While there might be short-term upside potential due to the positive momentum, it's crucial to consider the long-term outlook and the potential overvaluation based on the high PE ratio.
