Tesla and the Trillionaires Club
Everyone is talking about Tesla (TSLA) during the current week, whose capitalization has exceeded the $1 trillion bar. Now Tesla is on a par with other companies like Apple ($2.47 trillion), Microsoft ($2.33 trillion), Saudi Aramco ($1.99 trillion), and Amazon ($1.71 trillion). However, in terms of annual revenue, Tesla is ranked 89th in the S&P 500 broad market index list.
The company’s securities rose to $ 1094.77 a piece at Tuesday’s auction. Several positive news contributed to this takeoff, including reports for the past quarter and information about the order by the Hertz car rental service of 100 thousand Tesla electric vehicles for $ 4.2 billion.
The company’s revenue grew almost two times, to $13.8 billion net profit – to $1.62 billion against $331 million a year earlier. Investors continue to bet that electric cars will displace classic vehicles with internal combustion engines. Tesla’s competitive advantages will allow it to take over a significant share of the new car market. In addition, Tesla has planned to combine the fleet of electric cars sold in Europe with vehicles that the British firm supplies to its customers.
The British company JLR has joined the Honda brand in a deal related to reducing emissions with the help of Tesla. Tesla has enough experience in this matter because it has earned not a single billion dollars by helping car brands comply with the established requirements for harmful emissions. So, according to the scope of the company’s plans, I assumed that new records on paper are still ahead, especially since October ends with a noticeable growth of 39%.
Among the potential growth, targets are the levels of $1123.44 and $1260, obtained as a 161.8% and 200% correction to a decrease of $900.40-$539.49. the first goal is horizon; then, we can see a movement in the direction of $ 1250-1260 at the end of the year or the beginning of the next. But at the same time, I note the need for reverse testing of the $900.40 level broken up, which was the previous maximum for securities.
Passed This milestone with a gap up, which is a sign of strengthening. But in terms of technology, any important milestone is subsequently tested.
Therefore, despite the prospects for the growth of stocks, I recommend that those who did not have time to buy them wait for the correction to the $ 900-940 zone, where the gap from October 25 fast-moving average EMA21 ran the other day. Buying securities near EMA21 the other day will give you the optimal entry point into the position. Now the shares look locally overbought.
