Tesla, Inc. (TSLA)

Tesla stock forecast: buy or sell

Tesla stock outlook

  • Tesla closed today at $818.87 after remaining a 0.24%.
  • 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.
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Please read:
The comments written in this article are personal and not recommendations for you to buy or sell stocks. The author of this article does not know the particular positions of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are published for general educational reasons only

Tesla stock chart overview

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?

In the current situation of Tesla there is not any eligible buy setup. This doesn't mean we expect a selloff for TSLA in coming sessions, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

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Should I sell Tesla stock?

When you own a stock with some profit, it's really hard to decide the best moment to sell and get your benefits. In the same way as when we have to buy shares, determining when is the best time to sell is not a fickle decision, and we must follow our own trading strategy. Our trading system selects very simple strategies to guide us on when is the best moment to sell a stock. Be aware that these strategies are not intended for selling short TSLA stock

As a golden rule, you should not hold an open trade that produces losses greater than those expected at the time of purchase. The moment to sell your stock must always be dictated 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 profit can keep their positions

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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 30 days, 13 brokerage ratings were published for Tesla

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Tesla ratings

Brokerage firmRating
Apr 30th, 2020
Bank of America Sell
Apr 30th, 2020
Canaccord Genuity Neutral
Apr 30th, 2020
Credit Suisse Group Neutral
Apr 30th, 2020
Goldman Sachs Group Strong buy
Apr 30th, 2020
JMP Securities NeutralBuy
Apr 30th, 2020
Oppenheimer Strong buy
Apr 30th, 2020
Piper Sandler Buy
Apr 30th, 2020
Royal Bank of Canada Sell
Apr 30th, 2020
Wedbush Neutral
May 1st, 2020
Deutsche Bank Neutral
May 1st, 2020
Morgan Stanley Neutral
May 4th, 2020
Morgan Stanley
May 19th, 2020
JMP Securities Buy

Technical analysis

SMAs overview

A favorite tool of many traders are the moving averages, that easily show trend momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages. You can found more about Moving Averages from sources like Wikipedia and Investopedia

Tesla is trading above all 3 major moving averages (50-d, 100-d, 200-d). This is a very powerful strength indicator. Price is trading now 72.77% over the 200-day moving average, and although shares may climb even higher, this should make you cautious as prices usually revert to the average at some point.. Price rebounded over the 200-day SMA in mid-March. Since then, it gained a 120.49%, from $371.39 to the current close at $818.87. Tesla is currently trading above the 50-day simple moving average after regaining this technical level in mid-April. Since then, shares moved a 26.57%. Before crossing up, price traded below the 50-d simple moving average for a month

Supports and resistances

Technical analysts use support and resistance levels as a way to spot price points on a chart that may behave as glass ceiling, containing the price of an asset to move in certain direction. Supports are levels where the price may find support as it falls. Price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down the support, it is likely to continue declining until meeting another support level. On the other side, resistances are where the price tends to find opposition as it moves up. Again, the price is more likely to "bounce off" at this level, and if it finally crosses this level, the price will climb more easily until it approaches the next resistance

The current resistances are:

  • R1: $869.82 (6.22% above)
  • R2: $968.99 (18.33% above)
  • The current support levels are:

  • S1: $389.61 (-52.42% below)
  • S2: $387.46 (-52.68% below)
  • S3: $386.99 (-52.74% below)
  • Bollinger bands

    The so-called Bollinger bands are a popular studio that was created by John Bollinger. It consists of 3 lines that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that gauges price fluctuations to reveal when the price of a share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    The RSI crossed up the oversold level of 30 in mid-March after just being in the oversold zone for just one day (what can be considered a strength signal). The RSI reading today was 60.4. Since RSI left the oversold zone, Tesla stock skyrocketed a 126.7%

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    Earnings and financials

    Tesla's earnings call

    Tesla released earnings report in late April. Stock made earnings of %s per-share, beating the market consensus of $-0.25. Sales for the quarter were reached $6.0 billion, a decrease of -18.83% compared to the preceding quarter. On the profit side, profits have fallen by 84.76% to $16.0 million

    In terms of history, per-share earnings of %s was down an almost flat -44.66% after increasing in the previous 3 quarters. Comparing the last quarter's results with those of the same quarter last year, earnings of %s per-share sank -139.31%

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