Is It Safe To Invest In Tesla Now?

Two days ago, Tesla smashed Q2 earnings estimates by Wall Street analysts by posting surprise GAAP earnings per share of 50 cents, sending the stock up about 6% in aftermarket trading.

Yesterday, Piper Sandler analyst Alexander Potter raised the firm’s price target on Tesla to $2,400 from $2,322 and reiterates an Overweight rating on the shares.

According to Thefly: The analyst stills think Tesla “deserves ‘must own’ status” following last night’s Q2 results. While true that the company benefited from a high amount of credit-related revenue in the quarter and S&P 500 Index eligibility likely wouldn’t have been possible without that revenue, it is “undeniably impressive” that the company may still exceed 500,000 deliveries in 2020, Potter tells investors in a research note. The analyst says that with market share “inflecting “and self-driving roll-outs on the horizon, he “can’t envision” selling Tesla now.

Is it still safe to join the investors that bought way below $1000, by buying at this relatively short-term high price level?. The answer IMO is YES!.

Tesla CyberTruck

Should in case you missed this breaking news, Moody has upgraded Tesla’s ratings including CFR to B2 and senior unsecured to B3; suggesting Tesla’s financial outlook is stable.

Moody’s upgrades Tesla’s ratings

According to SEC, Moody’s ratings provide predictive opinions on one characteristic of a corporate entity’s financial enterprise – its likelihood to repay debt in a timely manner. … It is crucial that our ratings be reliable in their aggregate probability assessments of credit risk.

So if your question is still about the safety of your investment, in relation to Tesla’s financial stance, I believe if Moody’s is positive about Tesla’s financial outlook, you can safely be positive as well.

Let me remind you that Tesla is growing massively time over time. Tesla is currently building a new factory in Europe, and according to the CEO Elon Musk, the made in Berlin Model Y will be revolutionary as it will be almost completely built differently than the Made in China/U.S.A Model Y.

Tesla Giga Berlin 2020

Also, Tesla builds new factories with less amount of money and much faster. “Better factory for less money,” says Elon Musk during the Q2 calls. Every new factory adds value to the product.

Moody’s Investors Service (“Moody’s”) upgraded the ratings of Tesla, Inc., including the Corporate Family Rating to B2 from B3, and senior unsecured rating to B3 from Caa1, and the speculative grade liquidity rating to SGL-2 from SGL-3. The outlook is stable.

According to Moody’s, The upgrade reflects Tesla’s sustainable position in the auto industry as a specialized producer of pure battery electric vehicles (BEVs). However, preserving this strong position in BEVs in the face of emerging competitive challenges will depend on Tesla’s progress around manufacturing efficiency and product development to achieve even broader customer acceptance at an affordable price.

“Moreover, Tesla’s expansion prospects benefit from regulatory pressures on the auto industry to reduce emissions so Tesla’s advanced position in BEVs is an important factor at the higher rating. At the same time, the weak governance at Tesla also constrains the rating.” – Moody’s added.

Tesla is clearly putting in much more energy in the machines that build the machines. Tesla CEO Elon Musk has emphasized times without number how much Tesla factories are revolutionary. He is always on the lookout for smart people to work for Tesla.

  • …. Corporate Family Rating, Upgraded to B2 from B3
  • …. Probability of Default Rating, Upgraded to B2-PD from B3-PD
  • …. Speculative Grade Liquidity Rating, Upgraded to SGL-2 from SGL-3
  • ….Senior Unsecured Regular Bond/Debenture, Upgraded to B3 (LGD4) from Caa1 (LGD4)
  • Outlook Actions: ..Issuer: Tesla, Inc.
  • ….Outlook, Remains Stable

Tesla was down yesterday almost 5% and seems to be down about 4% at the moment in Pre-Market. This is surely a discounted price compared to where the Stock was trading yesterday when the market opened.

S&P 500 index falls 40 points: worst day since June as the surge in unemployment claims, coronavirus cases send Apple, Tesla, Microsoft Stocks down sharply. The broad market is presently down, Apple, Microsoft, Netflix, among others were also down yesterday about 4% each, and they are all down in Pre-Market trading as well. According to experts, the entire market is down due to the bad unemployment numbers posted yesterday.

If you have any questions, feel free to use the comment section.

“Betting Against Tesla Stock Is A Bad Idea” – Popular Tesla Bear

Longtime Tesla Stock bear, Carson Block, warns that betting against Tesla Stock is a bad idea. He warns short-sellers to stay the heck away from short-selling Tesla.

Carson Block: “Short it at your own risk. I wouldn’t do that.”

Carson Block is one of Tesla critics since day one. Block is a short-seller and the founder of Muddy Waters Research. Block is known for documenting and alleging fraudulent accounting practices in publicly traded Chinese companies.

In an interview with Bloomberg’s Tracy Alloway and Joe Weisenthal on the Odd Lots podcast, Block thanked God for not shorting the stock that has ruined well established short selling funds.

“I’m not short the stock, thank God,” – Block

“We used to joke that Tesla, when it files for bankruptcy, will probably have a $30 billion market cap. Short it at your own risk. I wouldn’t do that.” – He added.

According to Block, you can bet against Tesla, but never ever bet against Elon Musk. Well we guess that equally means, never ever bet against Tesla as long as Elon Musk remains incharge!.

Tesla Bullish Analysts Seems To Have No Idea Where The Share Price Is Headed.

Shares of world most valuable vehicle maker Tesla Inc!. is presently up $1,643.01 +98.36 (6.37%) as at now in pre-market, as investors continue to bet that the stock is headed for inclusion in the S&P 500.

Most bullish analysts seems to be done raising price targets and doing catch up with the massive rally as the price keeps going higher and higher since breaking the psychological price of $1000.

One of Tesla’ most bullish analysts, Daniel Ives, of Wedbush has kind of stopped raising his Tesla Shares price target lately. In a new report sent to clients, Although while the Street reduced its annual delivery forecast to roughly 400k from its original 550k pre-COVID, Daniel Ives still believes Tesla could deliver about 450,000 vehicles this year.

Ives has a Neutral rating and $1.250 price target, while the stock is present worth $1,544.65.

Apart from Ark Invest 2024 price target of $7,000, with a $1,500 bear case and $15,000-a-share bull case, and JMP Securities analyst Joseph Osha that most recently raised the firm’s price target on Tesla to $1,500 from $1,050 and keeps an Outperform rating on the shares, most other bullish analysts have a price target of $1300 max.

Osha is citing the company’s “significant upside” in Q2 deliveries with 90.7K shipments vs. his forecast of 73.8K and the consensus figure of 70.3K. Osha adds that Tesla’s Q2 delivery outcome is “significant” and supports his outlook for continued competitive gains as the company’s decline of about 5% from last year’s volume compares to the industry where demand is collapsing at a rate at least 3-times that pace.

So, do you think Tesla bullish analysts are being careful, or they just have no idea where the shares price of the Electric vehicle maker is headed?.

Tesla Stock Up Over 50% In 7 Days

Tesla Inc!. Stock is on Fire!.

The Stock is on a seven straight session rally after several good news hits investors.

The stock opens with gaps day after day, giving investors over 50% gain in a very short period of time, amid coronavirus pandemic.

Analyst Dan Levy of Credit Suisse upgraded the stock from underperform to neutral with a price target upgrade from $415 to $580.

According to him, in his note: Tesla now “competitively has more edge in the transition to EV as coronavirus disruption will make it more difficult for legacy automakers to balance the long-term shift to EV in the face of near-term cycle disruption,” Levy wrote. Traditional car companies must make “tough choices in product investment.” Still, Levy questions whether Tesla will be able to ramp up supply and he estimates that the shutdown of the company’s Fremont factory could be driving $300 million a week in cash burn.

Coronavirus-related market gyrations led Tesla shares to drop as much as a 61% from a record high on Feb. 19. The stock has been steadily advancing since the company reported better-than-expected first-quarter deliveries on April 2 and is back to the levels it was trading at in early March.

“There is some clear optimism from the bulls,” Wedbush analyst Dan Ives wrote to clients on Monday. China production and demand appear poised for a significant rebound and should be a key growth driver over the coming quarter, he said. He maintains a Hold rating on Tesla.

Even so, it is now a “virtual impossibility” that Tesla will be able to reach its original annual delivery forecast of at least 500,000 units, according to Ives. Bullish investors are also looking past the shutdown of the company’s vehicle assembly plant in Fremont, California, which could last at least another month, further complicating the delivery trajectory for the coming quarters, he said.

Tesla is set to report Q1 ER before month end. Analysts are divided over weather the electric vehicle maker will report a positive or negative ER.

Over the weekend Bernstein analyst Toni Sacconaghi lowered the price target on Tesla to $500.00 (from $730.00) while maintaining a Market Perform rating.

6 Reasons Why Tesla Will Survive Zombie Apocalypse – Elon Musk

Back in 2013 when the world most valuable electric automaker started to power its 480-volt Superchargers with solar panels and storing the electricity in lithium-ion battery packs, the CEO Elon Musk made a powerful statement that seems to fit this present scary coronavirus Corvid-19 period.

“when the zombie apocalypse comes, you’ll still be able to drive your Model S electric sports sedan coast to coast in the US”

Elon Musk

Tesla is the most recession-proof automaker out there that is worth investing in for a longer period of time, that can withstand the current economic recession caused by the crash of Oil and the Corvid-19 coronavirus.

The Social Distancing Economy

  1. Air-condition and Heating: Tesla cars use a compressor that is “similar to the one in a domestic fridge. This means the air inside a Tesla car is much more cleaner than that of ICE cars. The compressor, like in your IC engine-powered car, pushes the refrigerant through the chilling unit and cools the air before reaching the AC vent. This means you air is very clean, as long as the doors/windows are shut. No air is literally coming into your car from outside.
  2. Buy A Tesla: To buy a Tesla car you don’t need any middleman/dealership. All you have to do is go to tesla.com, select your specs, input payment method, and hit the buy button. Your car can be delivered to your doorstep within days, depending on where you live. This eliminates contacts with potential sick workers or car sellers. You may then disinfect your car, and enjoy your healthy life.
  3. Tesla Is Loaded With Cash: Tesla now sits on over $8 billion in cash going into a recession. Yes they have some debts to settle this year, but with such a huge capital raised few weeks ago, the risk is off the table. Tesla was profitable in third and fourth quarters 2019, pushing Tesla stock price to fresh all-time-high closer to $1000, and the market capitalization above $100 billion, until most recently.
  4. Tesla Has Factories In USA and CHINA: Tesla is neither limited to one location nor is it limited to one continent. Tesla Giga Shanghai went into production last year in China where the coronavirus case is significantly slowing down, after record factory construction. The Shanghai factory was shutdown last month for about a week, but now fully back in making electric cars. Tesla is presently building a fourth Giga factory in Berlin, Germany. The factory is set to start producing Model Y in 2021 once construction is completed, with a target of over 150000 cars per year at start. Elon Musk is also presently looking for the fifth Giga Factory location to build the controversial Tesla Cybertruck.
  5. Tesla Infotainment: Tesla’s recent in-car infotainment moves include a service called “Caraoke” and linking to Netflix, Hulu and YouTube accounts. According to Tesla CEO Elon Musk: “It’s not just some sort of transport utility device with no soul and no character.”.  Elon Musk has said it several times that his goal is to create an infotainment system that provides “the most amount of fun you can have in a car.”. This means, you can always drive to a beautiful beach side with amazing view with your family, and enjoy a in-car cinema experience.
  6. Over The Air Updates: Tesla vehicles regularly receive software updates via radio, which set up new features and improve existing functions via WLAN. As soon as an update becomes available, a message appears on your touchscreen. You then have the option to install the update immediately or at a later time. With the premium connectivity package set up, you can also download updates via the mobile phone connection of your vehicle. Your car never gets old!.

Alright guys, this list can surely go on and on but lets keep that for another post. Don’t doubt your vibes with Tesla, just buy it!.

This Is Wedbush Analyst “Daniel Ives” Tesla Coronavirus Analysis

Wedbush Analyst Daniel Ives has 5 big tech names he believes investors should own in this coronavirus sell-off period.

Tesla is his third pick. Ives has a HOLD rating with a $710.00 price target on Tesla. Tesla is currently trading around $620.

Daniel Ives Top 5 Stock Picks:

  1. Apple
  2. Microsoft
  3. Tesla
  4. Adobe
  5. ZSCALER

In an interview on The First Trade, Daniel said he believes the first quarter is not going to be pretty, especially in China. according to him: “Tesla is a name that from EV perspective is like 5G for Apple, you are looking at over a 12, 18, next year, next two years period, the question is can they get to a 100,000 Chinese units in the first year, I believe that is something that obviously is going to be a stretch, but ultimately I think that’s about 4x to 5x the U.S market”. If you believe 2021 numbers will be pretty, then you are buying in now, he adds.

Daniel Ives thinks The Street is going to look pass March 2020, and will instead focus on September, and 2021 numbers.

Tesla unit demand levels difficult to hit in Q1 due to virus, says Wedbush Wedbush

Analyst Daniel Ives said extended factory delays in Shanghai for Tesla appear to be getting back to normalized levels, but he believes hitting the 100,000 units level in the first year appears unlikely given the hit to consumer demand trends and buying behavior from the coronavirus outbreak. Given the demand overhang in China, as well as Europe, he believes that Q1 unit demand levels will be difficult to hit for Tesla, but he still believes reaching the company’s 500,000 unit demand levels for FY20 “remain an achievable bogey,” the analyst tells investors. He keeps a Neutral rating and $710 price target on Tesla shares.

What Would Elon Musk Do? – Coronavirus Market Sell-Off Update

Today is the third worst market opening gap historically. What would Tesla CEO Elon Musk do in today’ super volatile stock market?.

The S&P 500 just set a third-worst open ever, following the financial crisis in October 2008 and terrorist attack in September. 11, 2001.

Since this page is inspired by the electric car marker Tesla, what would the CEO Elon Musk do?

According to few of his responses and tweets on twitter, Elon Musk believes it makes no sense to panic. He thinks it is dumb to panic due to the coronavirus.

One commodity has been in particularly high demand: Toilet Paper.

Why are Americans panic buying toilet paper till it’s out of stock?. I think this is a question for the human gods like Elon Musk, below is his answer to that!.

According to Elon Musk in his tweet above, Toilet Paper may soon cost close to $3999, and come with a free one carat Diamond Ring.

Would Elon Musk Add To His Tesla Share?

You bet he would if he had to. The market is in a correction phase at the moment and Tesla Stock has not been left behind.

Tesla market cap still sits comfortably above $100 Billion, so Elon’ pay day is still very safe and secured.

Tesla Stock is down more than 20% from its previous high of about $965, and presenting trading around $620. The Stock is still well above the 100DMA (~$483), and very well above the 200DMA (~$355), that said, hardcore Tesla bulls are predicting the stock should hit $1500 within the next 4 years in worst case scenario, and $7000 and above if Elon Musk delivers.

If you are looking to hold for years, now doesn’t seems to be a bad time to start picking up the stock level by level.

“be fearful when others are greedy and greedy when others are fearful” – Warren Buffett

The CEO bought about $10 million worth of shares on Feb. 14, paying an average of $767 per share. so if you buy today, you are better positioned than him ;).

Conclusion:

Elon Musk is presently busy doing what he does best, trying to make humans multi-planetary. while the world fights for toilet paper.

PS: Please remember to watch your hands, and stay safe ;).

These Hedge Funds Made A Killing On Tesla Stock Rally

This is a list of some prominent hedge funds that placed bets on electric car maker Tesla Inc!. in the fourth quarter and enjoyed a massive rally.

Their bets must have bagged them nearly 100% profits over the first six weeks of the year, Assuming they are still holding their positions or they cashed out right at the top.

The positions were revealed in 13F filings with the U.S. Securities and Exchange Commission released on Thursday and Friday, which are one of the few public ways of tracking what hedge fund managers are selling and buying. The disclosures are made 45 days after the end of each quarter and may not reflect current positions.

  1. Billionaire Ray Dalio’s Bridgewater Associates: Bought about 45,000 shares, which would now be worth approximately $36 million.
  2. Viking Global Investors: Bought about 52,000 shares, which would now be worth slightly more than $42 million.
  3. Granite Point Capital: Bought about 3,000 shares , which would now be worth approximately $2.5 million.

Tesla is still the second most valuable car manufacturer in the world, Stock price now presently at $800, and market capitalization of the electric car maker is now about $144.313 Billion, about $53.999B more than Tesla’.

What Is Next For Tesla Investors?

Tesla market value at this moment is about $104.768B, beating market value of German car manufacture Volkswagen AG ($89.535B atm) for the first time. If Tesla market value stays above $100B for some months, Tesla CEO Elon Musk will be smiling big to the bank for a huge payday.

While Musk’s skeptics are dubious that Tesla should be worth more than a carmaker that sold almost 30 times as many vehicles last year, Volkswagen’s own Herbert Diess isn’t so dismissive. He’s been arguably the most vocal CEO among traditional car makers to praise Tesla and point to its role in a radical shakeup of the more than century-old auto industry.

What Is Next For Tesla Investors?

2020 with no doubt started remarkably for Tesla investors, while the stock’ short sellers are having worst period of their time. Short sellers are said to have been burnt badly, losing over $2B in this amazing short period of time, while Tesla keeps breaking highs after highs.

Next week Wednesday (January 29th 2020), Tesla is expected to release 2019 fourth quarter earning report. According to Zacks Consensus Estimate, Tesla is expected to post quarterly earnings of $1.62 per share, which represents a year-over-year change of -16.1%. Tesla carries a Zacks Rank of No2, which indicates that Tesla will most likely beat the consensus EPS estimate or +3.34%, The EPS estimate is +3.34% because most analyst are super bullish that Tesla will beat ER.

in 2019, Tesla has only managed to beat consensus EPS estimates just once, which was in Q3. Tesla was expected to report a loss of $0.15 per share but it blew every analysts mind by posting earnings of $1.86, which was a shocking surprise of +1,340% of what most Wall Street’ analysts expected.

Will it be the same case this period?, feel free to share your opinion with us in the comment section.