Business & Investment

“Watt Up” Tesla Investor? ⚡

“Watt Up” Tesla Investor?

Of all the strains on the market, Tesla is by far the most notorious. With a very cool CEO and a great car, you might think that stocks only look better. But nevertheless, many investors, especially those who prefer fundamental analysis, are confused by Tesla’s assessment.

Fundamental analysis focuses on companies, financial statements, health status, and competitors. An alternative perspective, which is often the rise of Tesla, prefers to make decisions based on hype and technical analysis. All this is important, as as of today, Tesla has generated massive revenues of 754% in the last year and 1,300% in the last five years, which is highly overvalued by basic standards. In fact, JPMorgan Chase has recently doubled its bearish call to Tesla. Specifically, it lists a $ 90 price target, or a significant 85.25% reduction from the current price. So where is the evidence? One of the key indicators for many investors is Tesla’s price-earnings ratio. Price Earnings Ratio (P / E Ratio) or Price Earnings Ratio measures a company’s current stock price relative to earnings per share and indicates how much the stock buyer is willing to pay per dollar of earnings from the company. .. The average price-earnings ratio based on the long-term average of S & P500 is about 15 times. Tesla’s price-earnings ratio is currently at an astonishing 1,173.

This may seem impossible at first, but it actually makes some sense to explain the current attitude of investors. Not only are more amateur retail investors than ever before, but these investors are often investing out of excitement and hype and out of balance sheets. equation. Some call this pointless, but it’s whether you like it or not, and it’s interesting to see what the future of your investment will be. This is a much bigger picture, and Tesla’s story today is just a current example of investor attitude. So who do you think will dominate Tesla’s direction? Will Tesla’s dedicated “Musketeer” win, or will the trusted fundamentals win?

I am not a financial adviser. My comments should not be taken as financial advice. There are risks associated with investing, so be sure to conduct a survey and analysis in advance.

“Watt Up” Tesla Investor? ⚡ “Watt Up” Tesla Investor? ⚡

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