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SimpleFX: Tesla Stock Analysis


On various occasions we have exposed about movements in the stock market, particularly from the big tech companies like Amazon. In today’s article, people from SimpleFX prepared an analysis to determine if it is worth it buy or sell Tesla stock.

Situation with Tesla

Tesla drew attention last week after breaking the $ 1,000 a share barrier for the first time. On Wednesday, Tesla shares soared to a record high of $ 1,026 and closed 9% higher at $ 1,024. However, it is currently trading at $ 990. The spike seems to urge traders to become optimistic. But will the price keep the momentum going?

Also, the CEO of the company, Elon musk, expressed his intention to “do everything possible” in the volume production of Tesla Semi, the company’s large flatbed commercial truck, spurring more investors. Furthermore, Chinese government approval for the mass production of the Tesla Model 3 with lithium-ion phosphate batteries is another contributing factor.

As awareness of climate change increases, investors are looking at greener industries like Tesla, which is dominating the market for electric vehicles (EV). Tesla leans toward clean, zero-emission power generation.

Stock analysis

Tesla Motors, Inc. Spot based CFD since January 2019. Source: SimpleFX WebTrader
Tesla Motors, Inc. Spot based CFD since January 2019. Source: SimpleFX WebTrader

Tesla’s (NASDAQ: TSLA) actions fought well against the anguish of the Coronavirus pandemic. TSLA.US increased 129% in less than 6 months, despite the momentary closure of Tesla’s main factory in California for more than 1 month earlier this year. The company’s market capitalization increased to $ 190 billion. It is approaching Toyota’s market value at $ 216 billion.

Ron Baron, a renowned billionaire mutual fund manager, is one of Tesla’s first investors and believes the company will generate $ 1 trillion in revenue in 10 years. His investment has earned four times, and he expects it to double or triple in 5 years.

Also, Wedbush Securities analyst, Dan Ives, raised its bullish price target from $ 1,350 to $ 1,500, based on Tesla’s rapid deployment and rising demand in China. He added that the Shanghai Gigafactory can make 100,000 deliveries in its first year.

On the other hand, Morgan Stanley and Goldman Sachs downgraded Tesla’s rating on June 11. Morgan Stanley Adam Jonas downgraded Tesla from “equal weight” to “underweight,” saying that the recent rise in Tesla’s stock prices above $ 1,000 does not reflect emerging risks. He cited that the company’s price cuts imply weak demand and that the growing tension between China and the United States could affect Tesla disproportionately compared to its competitors.

SimpleFX can help

Take advantage of upcoming price changes and trade Tesla CFDs now. You can make a profit as long as Tesla’s stock price rises or falls. Create a free SimpleFX account with your email address. There is no minimum deposit. Trade online anywhere using your desktop computers or smartphones.

The interface to trade Tesla shares from SimpleFX.
The interface to trade Tesla shares from SimpleFX.

To trade Tesla stocks, go to SimpleFX WebTrader and search for “TSLA.US” in the search bar at the top of the screen. Then click “New Order” at the bottom to buy or sell. Enjoy commission-free trading with leverage up to 500x. Trade Tesla CFD Today!

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