Summary
This prediction is currently active. With a performance of 8.00%, the SELL prediction by TraderLong for Tesla Inc is trending in the wrong direction This prediction currently runs until 04.06.24. The prediction end date can be changed by TraderLong at any time. TraderLong has 50% into this predictionTesla (TSLA) is an American electric vehicle and clean energy company founded in 2003. With its focus on innovation and sustainability, Tesla has quickly become a major player in the automotive industry, producing not only electric cars, but also solar panels, batteries, and energy storage products. Led by visionary entrepreneur Elon Musk, the company has a market capitalization of over $700 billion and has seen its stock price soar in recent years as a result of its strong financial performance and growing influence in the energy and transportation sectors.
Performance without dividends (%)
| Name | 1w | 1m | 1y |
|---|---|---|---|
| Tesla Inc | -1.637% | -1.637% | 4.512% |
| iShares Core DAX® | 1.851% | 5.158% | 17.711% |
| iShares Nasdaq 100 | 1.573% | 2.589% | 39.053% |
| iShares Nikkei 225® | -0.412% | -2.857% | 13.501% |
| iShares S&P 500 | 1.128% | 2.485% | 29.871% |
According to TraderLong what are the pros and cons of Tesla Inc for the foreseeable future?
Pros
EBIT growth >5% per year expected
positive Cash Flow expected
Good culture
Leading role in innovation
Top 10 in its market
Standard Investments for future growth
Small challenges to pay loans and raise capital
Very capable Management
Differentiated customer and product portfolio
Known brand
Future proof or reliable business model
Cons
Probably not worthwhile Investment
Revenue decline/stagnation expected
Very low/no dividend yield expected
Higher risks for its business
Lower EBIT Margin than peer group
High valuation
Risky balance sheet
ROE lower than 10% per year
Few uniques
Sustainability is not important
Comments by TraderLong for this prediction
In the thread Tesla Inc diskutieren
As a leading electric vehicle (EV) manufacturer, Tesla has gained significant attention in recent years. However, I believe there are reasons to be bearish on the company due to the upcoming macroeconomic environment and Tesla's diminishing competitive advantage in terms of profit margins.
Firstly, the Federal Reserve is scheduled to conduct its final interest rate hike of the year on May 3rd. Historically, financial markets tend to underperform following the last rate increase in a cycle. Furthermore, the lingering effects of the previous inverted yield curve on U.S. Treasury bonds, which often signals a potential recession, have not yet dissipated. As market focus gradually shifts from rate hike expectations to recession concerns, growth stocks like Tesla are likely to come under pressure.
Secondly, Tesla's aggressive global pricing strategy is causing its most crucial profit margins to decline. As the company continues to reduce prices to maintain market share, its status as a leading EV manufacturer becomes less advantageous. This shrinking competitive edge is another reason behind my bearish outlook on Tesla.
In conclusion, given the macroeconomic factors and Tesla's diminishing competitive advantage in terms of profitability, I believe that the company's stock might face headwinds in the near future.