Market and
partners news

Analysis of Tesla Inc.

Analysis of Tesla Inc.

8 June 2022

Tesla: to make money on inflation and technology 

Tesla is a legend company headed by a big dreamer and an ambitious careerist. Tesla costs $740.5 and is among the top 6 largest American companies.

Of the latest news concerning the issuer, the focus was on these:

  • analysts at Daiwa Capital Markets lowered the forecast for the company’s securities to $800 from the previous level of $1,150, as they fear the problems with supply chains and disruptions due to the spring quarantine in Shanghai may occur;
  • Leo Koguan, who positions himself as the third largest shareholder of Tesla, demands that the company buys back securities worth $15 billion, as the shares have fallen significantly since the beginning of the year. Koguan is an enthusiastic and emotional person, his bet on Tesla was based mostly on sympathy for Elon Musk;
  • Elon Musk himself in early June demanded that employees come back to the office. “If you don’t show up, we will assume you have resigned,” says the letter, which was received by Tesla employees. “The more senior you are, the more visible must be your presence”. It is also worth noting the company’s intention to reduce up to 10% of employees due to the likely deterioration of the economic situation;
  • at the same time, work on Optimus, a working prototype of a humanoid robot, is well under way, it can be presented by the end of the third quarter. If we assume that an electric car is the simplest robot, it becomes clear where Tesla is aiming. The EV sector is becoming increasingly dense in terms of competition, but Tesla and Musk are able to solve such problems. The success of the idea is of enormous economic importance, therefore it will globally influence the behavior of stocks.

Besides other informational noise, technological challenges are now of paramount importance for Tesla. Cathie Wood’s Fund, in an ambitious forecast where the company’s shares can grow by 360% in 4 years, relies on a productive solution to the issue of autonomous driving – it will also be possible to rely on it in Optimus.

Among the obvious negatives for Tesla is the trend of the US Federal Reserve System to raise interest rates, which will make the cost of lending higher.

The company’s reporting for the first quarter of 2022, which has been recently presented, on April 21, reflected an ideal example of transferring rising inflation to the consumer. The company maintained the growth rate of its core business, showing impressive results, and increased revenue by 6%, and adjusted profit by almost 30%. By raising prices, Tesla has not lost customers.

Technical signals on the daily chart demonstrate buying opportunities. The MACD indicator is growing in the negative zone and forms conditions for a higher pass. The Stohastic oscillator goes up in the positive area and confirms the buy signal. In case of consolidation above $800, buyers will be able to pass to the first target at $900.

8 June 2022
Analysis of financial market

The main driver of the past two weeks remains the growing dollar index, which...

Analytics of financial market

ES (S&P 500) S&P 500 correction is over. We not only managed to make ...

Analysis of financial market

ES (S&P 500) Correction has begun for the S&P 500. We took a position...

Analysis of financial market

Over the past two weeks, the broad market has remained at its highs without a...