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Tesla, Inc. (TSLA)

Tesla stock forecast: buy or sell

Close on Oct 23rd, 2020
$420.63 -1.21%
3 months performance
39.80%
Published: October 23rd, 2020 - 6.07pm EDT

Tesla stock outlook

  • Tesla closed today at $420.63 after slicing a -1.21%.
  • Morgan Stanley published a neutral rating for Tesla today, with a target of $360.00
  • On Wednesday, Tesla made public its Q3 earnings report
  • Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, Netherlands, Norway, and internationally.

Important:
The opinions published in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this document does not know the specific conditions of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are published for learning purposes only

Tesla stock charts

Should I buy Tesla stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $TSLA stock a buy?

Currently, Tesla stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for $TSLA in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Tesla stock?

How to know when is it time to sell Tesla?. Trading strategies allow us to avoid impetuous decisions based on our sentiments or the buzz surrounding the market. Our trading system selects very simple setups to guide us on when is the best time to sell a stock. Be aware that these setups should not be used for selling short $TSLA stock

As a rule of thumb, you should not hold a trade that generates greater losses than those expected by the time of the buy. The timing to sell your stock must always be determined by the stop-loss (automatic or manual)

Is it time to sell Tesla stock?

In the current situation of Tesla there is not any eligible sell setup, so Tesla stock holders with operations in green can keep their positions

Analysts' recommendations to buy or sell Tesla stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 24 analyst ratings were published for Tesla

Tesla ratings

Brokerage firmRating
Sep 23rd, 2020
Canaccord Genuity Neutral
Sep 23rd, 2020
Deutsche Bank NeutralStrong buy
Sep 23rd, 2020
Goldman Sachs Group Neutral
Sep 23rd, 2020
Jefferies Financial Group Strong buy
Sep 23rd, 2020
JPMorgan Chase & Co. Strong sell
Sep 23rd, 2020
Robert W. Baird Neutral
Sep 23rd, 2020
Royal Bank of Canada Strong sell
Sep 23rd, 2020
Sanford C. Bernstein Strong sell
Sep 29th, 2020
Citigroup Strong buy
Oct 2nd, 2020
Oppenheimer Strong buy
Oct 5th, 2020
Goldman Sachs Group Neutral
Oct 5th, 2020
JPMorgan Chase & Co. Sell
Oct 8th, 2020
New Street Research NeutralStrong buy
Oct 13th, 2020
Citigroup Strong sell
Oct 14th, 2020
Goldman Sachs Group NeutralNeutral
Oct 16th, 2020
Morgan Stanley
Oct 22nd, 2020
Barclays Strong sell
Oct 22nd, 2020
Canaccord Genuity Neutral
Oct 22nd, 2020
JMP Securities
Oct 22nd, 2020
JPMorgan Chase & Co. Strong sell
Oct 22nd, 2020
Oppenheimer Buy
Oct 22nd, 2020
Robert W. Baird NeutralBuy
Oct 22nd, 2020
Royal Bank of Canada BuyStrong sell
Oct 23rd, 2020
Morgan Stanley

Technical analysis

SMAs overview

Moving averages are tools for investors to detect stock momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. Further about Moving Averages from sources like Wikipedia and Investopedia

TSLA SMAs chart

Supports and resistances

Market investors use support and resistance levels as a way to find price points on a chart that may work as glass ceiling, preventing the price of an asset to move up or down. Supports are levels where the price may stop as it falls. Price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down the support, it is likely to continue descending until approaching another support level. On the other side, resistance levels are where the price may find a curb as it rises. In the same way, the price is more likely to "bounce off" at this level, and if it finally ruptures this level, it will rise more easily until it meets the next resistance

The current resistances are:

  • R1: $465.90 (10.76% above)
  • R2: $502.49 (19.46% above)
  • The current support levels are:

  • S1: $359.00 (-14.65% below)
  • S2: $329.88 (-21.57% below)
  • S3: $273.00 (-35.1% below)
  • Bollinger bands

    The so-called Bollinger bands are a popular studio that was created by John Bollinger. In essence, the Bollinger Bands are bands that fluctuate around a moving average, varying the distance from the bottom to the top depending on market volatility. They are usually drawn by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price surpassed the upper band on October 14, the price dropped by 9.72%

    TSLA RSI chart

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that track price action to identify when the share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI fluctuates between 0 and 100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in the late 1970s

    The RSI dropped below the overbought level of 70 in early September after just crossing to the overbough zone for a single day (weak signal). The RSI value today was 48.9. Tesla shares collapsed a 11.46% since RSI lost the overbought zone

    TSLA RSI chart

    Earnings and financials

    Tesla, Inc. ($TSLA) released quarterly earnings of $0.76 per share on Wednesday, significantly improving the Market consensus estimate of $0.56 per share. This quarterly report represents an earnings surprise of 35.71%. Company's sales was $8.8 billion in contrast to $8.3 billion estimated by market consensus.

    Same quarter last year, reported EPS was $0.37, so current EPS is a gain of 105.41%.

    Tesla ($TSLA) will host the earnings call next January 2021.

    TSLA revenues and profits chart