Tesla
TSLA
Delayed Nasdaq - 08/20 10:00:00 pm
308.44USD
+0.96%

Below a major resistance level

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Floriane Rousseaux
Junior Analyst

Strategy published on : 06/13/2018 | 16:05

short sell
Stop-loss triggered

Entry price : 340.617$
Target : 306.9$
Stop-loss : 357$
Potential : 9.9%

Tesla shares trade close to a major resistance zone that is situated around 252.48 USD. This zone should be difficult to break through, which in turn suggests a corrective move ahead.
Investors should open a short trade and target the $ 306.9.

Summary

● In view of fundamental criteria, the company is among low performers as far as mid or long-term investment strategy is concerned.

● For a short-term investment strategy, the company has poor fundamentals.


Strengths

● The prospective high growth for the next fiscal years is among the main assets of the company

● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.

● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock


Weaknesses

● Technically, the stock approaches a strong medium-term resistance at USD 357.42.

● The company has insufficient levels of profitability.

● The group shows a rather high level of debt in proportion to its EBITDA.

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● The company's earnings releases usually do not meet expectations.

● For the last few months, analysts have been revising downwards their earnings forecast.

● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.

● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.

Zonebourse.com 2018
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