Should I buy Tesla stock now? | Tesla Stock Forecast 2023

Should I buy Tesla stock now? | Tesla Stock Forecast 2023
Should I buy Tesla stock now? | Tesla Stock Forecast 2023

Should I buy Tesla stock now? [Tesla Stock Forecast 2023] – Get the latest Tesla (NASDAQ: TSLA) stock analysis for 2023. Find out if now is the right time to invest in the key $196.34 level.
Considering investing in Tesla stock? If so, you may be wondering, “Should I buy Tesla stock now?” Is 2023 still a good time to buy Tesla stock?

Tesla Inc. (TSLA) has been one of the hottest stocks of the last few years, and with good reason.

The electric vehicle (EV) maker is revolutionizing the auto industry with its cutting-edge technology and sustainable practices, and its stock price reflects that success.

In this post, we will cover an in-depth and comprehensive analysis of current Tesla stock market trends and forecasts to help you make informed investment decisions.

First, let’s take a look at Tesla’s performance to date.

Should I buy Tesla stock now? | Tesla Stock Forecast 2023
image source – google

Apple Stock Predictions: 2023 to 2025

Tesla is full of distractions, but don’t let the headlines distract you from how the business is actually going.


One of the most polarizing stocks in the market today is Tesla (0.91% TSLA). The bear will tell you it’s just an overvalued automaker, while the bull will argue it’s a tech company making cars. In reality, it’s a mix of those things, but investors have to decide which case has more value.

In 2022, the stock is down 65% — delivering the expected performance for the bears. However, it’s already up 35% since early 2023 — reviving the bullish trend. Is this your signal to buy Tesla stock? Or is stock (once again) running out too quickly? let’s find out.

The gross margin is down, but there is a threshold


CEO Elon Musk, who holds that title at Twitter, SpaceX, and many other companies, has been at the center of criticism of Tesla. It’s pretty clear that Musk has spent a lot of time refining his new $44 billion Twitter toy unless you’re completely flummoxed. Even worse, about 50 Tesla engineers have volunteered to work on Twitter.
This, of course, can be somewhat annoying and worry many investors.

However, Tesla’s recent quarterly results appear to have allayed those fears. In the fourth quarter, Tesla’s production was quite impressive.
While these production figures are impressive, there are other numbers that investors may be concerned about. First, inventory days (how many days does it take Tesla to use up its current vehicle inventory) increased to 13 days, from eight in the third quarter and four in the second.

Now, one could argue that 13 days is still a relatively small supply (which I agree with), but investors should keep an eye on this figure to ensure it doesn’t reach impressive levels. This means that Tesla manufactures the vehicles, but there is no consumer demand to buy them. For historical reference, this metric jumped to 31 days in the first quarter of 2019, so Tesla still has some way to go before reaching that threshold.

Another topic investors are focusing on is the pressure on Tesla’s margins. In the fourth quarter, Tesla’s gross margin fell to 25.9%, its lowest in five quarters. Declining gross margins can indicate an increase in the cost of goods or weak pricing forces, and as Tesla slashes prices on its models, this metric will come under additional pressure. However, CFO Zach Kirkhorn said on the earnings call that Tesla expects to post at least a 20% gross margin going forward, even with the price cut.
The move is likely to see gross margins automatically drop to a five-year low in 2023.
Lower gross margins mean less capital to raise, but Tesla makes up for that with a 16% reduction in operating costs – something few other companies can say happened in the fourth quarter. Those cost savings allowed Tesla to post fourth-quarter earnings per share (EPS) of $1.07 — an increase of 57%.

So while Tesla investors have a few things to consider — margins and inventory levels — this quarter has been very good financially. But even the best companies bought at the wrong price can be a bad investment, so is it a good time to buy Tesla?

Elon Musk Tesla shares,

Should I buy Tesla stock now?


Needless to say, Tesla Inc. is a leading vehicle manufacturer and energy company that designs, develops, and sells electric vehicles, energy storage systems, and solar panels.

Tesla was founded in 2003 and is based in Austin, Texas. Since its IPO in 2010, Tesla has grown rapidly and its stock price has skyrocketed.

In 2020, amidst a global pandemic, Tesla’s share price rose by almost 740%. The share price rose from $23 to a record high of $414.49 in the 20 months of 2020-2021.

This helped CEO Elon Musk become one of the richest people in the world and the company the most valuable car maker in the world.

However, this momentum could not be maintained. just 14 months later, the stock plunged to $100 and hit a 52-week low on January 6, 2023.

Even now, despite the negative news and speculation surrounding Elon Musk and his Twitter takeover, Tesla’s share price has increased significantly recently, up 80% in the same month (January 2023).

This can be attributed to the magic of Musk’s experience as a Tesla Twitter veteran.

Automotive trends and Tesla


Going forward, Tesla’s growth potential remains strong.

The global EV market is expected to grow significantly at a CAGR of 29% from 2021 to 2026 (source: Reportlinker.com), and Tesla is well-positioned to take a significant share of that growth.

Additionally, Tesla’s expansion into new markets such as China and Europe presents significant growth opportunities.

The company is also exploring new business opportunities such as solar panels and batteries, which could further increase its sales.

Tesla Stock SWOT Analysis and Financial Data


Strengthen

Strong brand reputation and innovation in electric vehicles and clean energy products.
Increasing demand for electric vehicles and renewable energy products.
Experienced and visionary leadership led by CEO Elon Musk.


Weakness

High production costs and limited profitability despite steady sales growth.
Dependence on government incentives and subsidies for electric vehicles.
Limited production capacity and backlog.


Possibility

expansion into new markets,
new product development,
Increasing public awareness and concern for sustainability and reducing carbon emissions.


Threat

regulation change,
the volatility of commodity prices such as lithium and cobalt,
Competition from both established car manufacturers and new entrants to the electric vehicle market.
If you look at Tesla’s annual results, you will see that the company’s financial position is growing rapidly, and has become one of the most valuable companies in the world.

Here’s Tesla’s financial summary

In 2022, Tesla’s revenue will be $53.8 billion, up from $31.5 billion in 2021. The company’s revenue is growing steadily as it continues to expand its business.
The company’s profitability increases as it becomes more efficient and sales increase.
The company’s earnings per share grew as sales and net income increased.
With a market cap (intraday) of $572.85 billion, it is a near debt-free company with a total debt-to-equity ratio (mrq) of 6.93%.

Tesla, Inc. has a 12-month P/E of 50.95x compared to the automotive industry’s P/E of 12.14x. (Source: ZACKS)

However, Tesla’s P/E has been historically high and is still high. However, that doesn’t mean the stock is overvalued; it also reflects market confidence in the company’s growth prospects.

Tesla stock technical analysis

Image Source – Yahoo Finance


In technical analysis, the time horizon is important. For long-term investing, let’s take a look at the monthly and weekly charts.

The major events we can see recently on the Tesla stock chart.

On the one hand, Tesla’s share price broke above the 50-EMA ($182) on the monthly chart, while on the other hand, the price broke above the 200-EMA on the weekly chart.

A close above this level on either a monthly or weekly basis could confirm further gains for the stock in the coming days.

We can see the technical resistance on the monthly chart when the black line touches the red line at 51 RSI (9, C). I’m not sure but it looks like the stock price is heading for 206, 223 and 265, and so on.
In the short term, the chart trend is now bullish with a positive extension of the Bollinger Band, which can also be confirmed by the green ADX.

Image Source – Yahoo Finance

The stock price is trading above the 50-day EMA (exponential moving average) at $159.50 and below the 200-day EMA at $216.36.

Tesla stock forecast for 2023


With a stock market calculator (stock market forecasting method) we can easily make estimates for Tesla stock. It can help in your studies.

Thus, the volatility of the share price in 2023 is 1,487 and higher than in previous years.

Based on past performance and experience, we can expect the trend to turn bullish in 2023 only when TSLA stock spikes above $196.34.

Stocks are still expensive, but it’s becoming more reasonable


Basically, there will be a big difference between bearish and bullish Tesla assessments. Tesla is currently trading at 49 times its earnings, which isn’t as bad as the 100 or more times it’s trading in 2021. However, consider Tesla’s future price-to-earnings (P/E) ratio (which uses its 2023 earnings forecast). ) indicates another trend.
With Tesla’s P/E ratio roughly in line with the expected P/E ratio, analysts believe Tesla’s earnings are unlikely to increase from 2022 levels.

For 2023, Tesla plans to match the 50% compound annual growth rate in vehicle shipments from 2020, meaning approximately 1.7 million shipments in 2023, or a 29% increase over 2022 figures, even with slight compression on gross margins. if Tesla can meet its delivery targets, it will likely beat earnings estimates — making the stock look cheaper than it really is.

Still, 45 times the forward earnings is not a cheap price for any company. If you’re committed to Tesla for the long term (three to five years), it might be a smart move to buy some stock now and hold onto it (while monitoring the business). However, valuation is still a risk, and if Tesla slips and doesn’t meet its guidelines, the stock could quickly sell.

Tesla is far from a surefire stock, but it’s still an attractive investment opportunity at this level.

Understanding the Tesla Stock Forecast


Let’s take the Tesla Stock Forecast 2022 as an example to understand how and to what extent a stock calculator can help you in investing or trading.

The volatility of the stock price in 2022 is 1,262. The stock is expected to continue higher only after breaking above $419.16.

But the stock failed to rise above $402.67. This means that the level of buying shares has not been reached throughout the year.

After falling below $262.84, the stock was expected to fall further, and it did. The downtrend targets were 256, 202, 139, and 75. However, the stock only dropped to 108.

Conclusion


In summary, Tesla (TSLA) is a top player in the growing electric vehicle market with bright future prospects and financial stability.

Despite having a high P/E ratio, technical analysis shows that TSLA stock has the potential to rise in 2023, depending on certain conditions.

The stock market calculator puts two clear points in buying Tesla stock for $196.34 and selling it for $88.75.

Ultimately, investing in Tesla stock will depend on your personal financial situation, investment goals, and risk tolerance, as well as a thorough understanding of the company and its industry.

Before making an investment decision, it is important to consider all relevant factors and, if necessary, seek professional advice.

Tesla stock is worth watching out for as the company’s future developments could have a significant impact on the electric vehicle industry.

FAQ about Tesla stock


Q: What is the current price of Tesla stock?

A: Tesla’s share price closed at 188.27 on February 2, 2023.

Q: Is this a good time to buy Tesla stock?

A: In the long term, of course. For 2023, $196.34 is a key level to buy TSLA stock. Please read this post carefully.

Question: Does Tesla stock have a future?

A: Tesla shares are part of the automotive industry, which is estimated to grow at a CAGR of 29% globally. The company’s expansion into new markets and new venture exploration paints a positive picture for its future.

Q: When did Tesla stock go up?

A: October 2019 to November 2021 was a golden time for Tesla’s stock price when it rose significantly from $14 to $414.

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