Sign InTesla's Market Cap Soars to $862 Billion, Promising Stock Performance Ahead
Summary
Tesla's market capitalization is $862.07 billion, with a high Price to Earnings ratio suggesting high market expectations for future earnings growth, and bullish technical indicators and promising news indicating the stock is likely to experience upwards fluctuation, making it a Buy, but investors should be cautious of potential volatility around the upcoming earnings announcement on July 19, 2023. (Date of analysis: July 12, 2023)
Fundamental Analysis
Tesla's market capitalization as of the last trading close on July 12, 2023 was about $862.07 billion, making it a significant player in the NASDAQ exchange. The company's outstanding shares amount to approximately 3.17 billion. The Price to Earnings ratio, a critical factor for determining a company's valuation stands at 81.43. This value, considerably higher than the average PE ratio for many industries, suggests a high market expectation for Tesla's future earnings growth.
Tesla's earnings per share currently sit at 3.34. However, an upcoming earnings announcement slated for July 19, 2023 could potentially disrupt these figures based on the company's performance. Previous years have seen yield fluctuations, making the announcement a critical aspect to watch.
Regarding news, recent headlines highlight the company's considerable market cap gain since the start of 2023 (a remarkable 151.61% year-to-date increase). Additionally, CEO Elon Musk has initiated a new project, xAI, set to work closely with Tesla on developing AI technologies. This move could potentially impact Tesla's future growth and its standing in the tech market.
Technical Analysis
Tesla's stock exited the July 12, 2023 trading session at $271.99 - a 0.82% change from the previous session. The Relative Strength Index (RSI), which measures the speed and change of price movements, sits at 57. This is a neutral zone, suggesting the stock may be neither overbought nor oversold.
The moving averages also present crucial signals. The 50-day moving average at $217.05 is lower than the last stock close, generally indicating an uptrend. Similarly, the 200-day moving average at $193.69 is lower still, reinforcing the uptrend indication. Also, the Moving Average Convergence Divergence (MACD) (3-month) at 16.48 supports the bullish momentum.
When looking at consensus estimates, the average target price is $287.54, suggesting potential room for upward movement. Low and high estimates have been earmarked at $130 and $526.67, indicating both bearish and exceptionally bullish outlooks from separate analysts.
Stock Performance Prediction
Considering the latest market data, bullish technical indicators, and promising news about company activities, the stock is likely to experience upwards fluctuation in the next trading day and the following week. However, there may be heightened volatility around the earnings announcement on July 19, 2023.
Evaluation
Tesla, Inc. is categorized as a Buy. This decision is backed by both robust fundamental factors (such as market cap and growth news) and promising technical indicators (like moving averages and MACD). Additionally, the prospective DCF analysis of $278.37 backs up the buy recommendation, although investors should keep in mind the upcoming earnings announcement and potential volatility this may cause.
