The Earnings Yield (also known as the E/P ratio) measures the anticipated yield an investment in a stock could give you based on the earnings and the price paid. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities. Dow Jones futures were little changed ahead of Tuesday’s stock market open. It has hit resistance at the 200-day line, so the short-term outlook is poor.

• The company was founded as a maker of electric vehicles and related components and has subsequently expanded into energy generation and energy storage products.
• Besides, consumers are facing higher interest rates today compared to the last few years, making it even more expensive for them to own a car.
• Some investments pay you profits or interest as you hold them.
• Tesla reduced its debt to equity ratio over the last 5 years from 122.5% to a simple 8.4%.
• Tesla Higher Safety Rating – Cars are statistically safer vehicles when using Autopilot.

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As Tesla’s stock price fell more than 50% from its peak, many are excited. But buying the stock today subjects investors to multiple risks. While a P/E above 70 is an extremely high valuation, if the company continues to grow at or near 50% for several more years, that won’t seem so rich. For investors looking years or decades down the road, buying Tesla right now could make good sense. In a recent investor conference, Tesla head of investor relations Martin Viecha said Tesla’s cost per vehicle was $84,000 in 2017 and has dropped to $36,000 per vehicle more recently. Continuing that trend will allow Tesla to get into the lower-priced EV market that should help create mass penetration for the EV sector.

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According to 29 Wall Street analysts who monitor Tesla, their consensus recommendation is to buy Tesla stock. Get Started with eToro TodayIf you want to track your investment in Tesla, hit the button below to create your watchlist. Click below to find out what other investors have to say. One of the biggest reasons eToro is our highest-rated brokerage is because of its social trading community.

TSLA Zen Score

Tesla reported operating income of $6.5 billion in 2021 and net income of $5.5 billion. Tesla’s CEO is Elon Musk, the richest person in the world, according to Bloomberg. Musk first joined Tesla as an investor and board member before becoming CEO in 2008. Musk agreed to acquire social media company Twitter in a $44 billion deal earlier this year. He later tried to back out of the deal before agreeing to the deal’s original terms. Tesla CEO Elon Musk is the company’s largest shareholder and the richest person in the world, with a net worth of about $223 billion as of October 2022, according to Bloomberg.

After doing my research on Tesla, I went from owning zero shares a year ago to making Tesla one of my top five holdings. So now let’s dive into these five areas of strength that Tesla maintains and should not be ignored mba asap by investors. The average 12 month stock price prediction for Tesla is $302.05, which is an increase from its current price. Analysts don’t agree on whether Tesla stock will go up or down in the short term, though.

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If we were to have one, I think, at a far healthier state and ability to handle a recession than it normally would be because normally, incentives would be very high right now. Really, they need to more than double from where they are. They’re now about 1.4 million units and they got down to under a million units on the new-vehicle side last September. So if one doesn’t like a GM or a Ford, another really high-quality name on my list that perhaps some people don’t know about is Gentex, ticker GNTX. Elon Musk is Tesla’s largest shareholder, owning about 15 percent of the company.

Learn more about TSLA’s earnings and revenue performance here. In the last five year, TSLA’s revenue has increased by 47.41% per year. This was slower than the Auto Manufacturers industry average of 3,038.91%. Jonas told investors that he adjusted his earnings estimate for Tesla from $7.14 to $7.11 for FY 2023 through and including FY 2027.

Elon has never taken a political stance against the Chinese government, and recognizes the Chinese EV market as a formidable competitor. Elon is completely focused and aligned with the customer experience for Tesla owners, employees, and shareholders. Tesla has a completely different level of brand and financial strength than it did 10 years ago. Sign up for our daily newsletter for the latest financial news and trending topics. Healthcare is one of the 11 core industries of the S&P 500. It’s also one of the largest, with an estimated market value of $7.4 billion globally.

Of Tesla stock, you’ll need to sign up for Stash and open a personal portfolio. The next one I would mention would be SAP SAP, a large German technology company. That one I think has traded off over 40% year to date. So, that’s trading well into undervalue territory, in our view. Plus, Tesla is falling short of Morningstar’s expectations. Tesla does not currently pay a dividend and has no plans to pay one in the future.

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You’d hate to have to sell Tesla when it’s near a low only to watch it rebound much higher after you exited the position. By sticking to a long-term plan, you’ll be able to ride out the ups and downs of the stock. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate.

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When evaluating a stock, it can be useful to compare it to its industry as a point of reference. The Value Scorecard identifies the stocks most likely to outperform based on its valuation metrics. This list of both classic and unconventional valuation items helps separate which stocks are overvalued, rightly lowly valued, and temporarily undervalued which are poised to move higher. Get Started Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content. If you’re interested in buying large-cap stocks, in these articles you’ll find technical analysis of leading large caps to see if they are in or near a proper buy zone.

In my opinion, it appears to reach that goal of 1.5 million vehicles is not fully in Elon’s control with possible future Shanghai lockdowns, but only time will tell to see what happens. The stock has been rewarded and punished depending if commitments of vehicle deliveries are missed. However, this is where I believe the media and investors can lose perspective. It is these areas of strength that have drawn me into becoming a long-term investor in Tesla. These areas of strength very rarely get examined in my opinion and some are hard to put a quantifiable value on. However, when I invest in companies, these are some of the most important areas of a business I examine.