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Tesla's Recent Performance and Future Prediction Hint at Volatility and Potential Rebound

StockInvest.us, 1 month ago

Tesla Company Overview

Tesla Inc, trading under the ticker TSLA on the NASDAQ, is a well-known electric vehicle and clean energy company. As of the market close on October 24, 2023, Tesla's last trading price was $216.52.

Recent Performance

Tesla’s stock closed higher by 2.09% or $4.44 with a high trading price of $222.05 and a low of $214.11 per share. The volume of trade was 116.73 million shares, slightly above the average volume of 114.93 million. Tesla's market cap stands at approximately $688.30 billion.

Technical Analysis

Technical indicators provide mixed signals for Tesla. The 50-day moving average is $248.04, significantly higher than the last closing price, suggesting a bearish trend. Moreover, Tesla's 14-day relative strength index (RSI) is at 18, indicating that the stock is oversold. This could be a sign of a potential price reversal in the future.

The stock is trading beneath its 200-day moving average of $215.69, which may be a concern for investors. The MACD (3-month) stands at -2.16, also suggesting a bearish momentum. Additionally, the stock hovers just above the support level of $215.49, with resistance seen at $220.11.

The Average True Range (ATR), a volatility indicator, suggests moderate market volatility at 5.15.

Fundamental Analysis

Tesla On the fundamental side, Tesla's PE ratio as of close on October 24, 2023, stood at 69.85, which is high compared to the industry average, indicating that the stock might be overpriced. The company has an EPS of $3.1 and about 3.18 billion shares outstanding.

Furthermore, the discount cash flow analysis provides a fair per-share value of $221.20, which is higher than the current price by approximately 2.16%.

Investors' opinions on TSLA vary. The stock has a consensus rating of 'Buy' with 23 buys, 7 holds, 3 sells, and 1 strong buy. The median price target by these analysts is $277.5, with a high target of $526.67 and a low of $125.

Company News and Events

Recent news can impact investor sentiment. Tesla has faced recent scrutiny with a SEC investigation relating to its autopilot feature. On a positive note, despite demand for EVs slowing down, the company remains highly profitable.

Future Prediction

Given these indicators, Tesla is likely to see some fluctuation in the following trading day and week. Considering the current oversold status and price nearer to the support line, a modest positive rebound might be expected but volatility will make the prediction challenging. Potential rebound aside, if the negative news continues, the stock might test its support level on October 25, 2023.

Final Evaluation

While recent performance and news have been concerning for Tesla, the consensus rating of 'Buy' by analysts and the stock being currently oversold suggest the potential for a future upward price rebound. The high PE indicates an overvalued stock but the discounted cash flow shows a slightly undervalued price.

Based on current data and future uncertainty, Tesla, at present, is categorized as a 'Hold'. This means keeping the current shares but being cautious on buying new ones due to the prevailing bearish trend, recent negative news, and the expected market volatility. Future decisions should be influenced by subsequent financial revelations, industry trends, and broader market movements. Be attentive to the overall health of the EV market and Tesla’s performance within it.

Check full Tesla forecast and analysis here.