#Tesla share price drivers#

The completion of more Tesla gigafactories and a potential reduction in the price of key raw materials are some of the factors that contribute to shaping the companyвЂ™s top-line future profit margins.Д®arnings beforeВ interest, taxes, depreciation and amortisationВ ( EBITDA) margins have been steadily increasing, landing at 13.6% last year. Revenues of Tesla have been soaring in the past five years, moving from $7bn back in 2016 to $31.5bn by the end of last year as a higher number of vehicles delivered and the launch of its less expensive Model 3 in 2017 propelled top-line results.Дuring that same period, gross profit margins have been steadily increasing as they moved from around 18% to 21% last year. ItвЂ™s important to note that even though the current pattern is pointing to the continuation of the stockвЂ™s uptrend, the weekly Relative Strength IndexВ is displaying a bearish divergence that indicates a steady decline in TeslaвЂ™s positive momentum.ДЇrom a technical standpoint, a plausible TSLA stock price forecast for the next 12 to 24 months may see the stock retest its all-time high but staying below that threshold, as its valuation is heavily stretched despite the businessвЂ™s industry-disruptive nature. That said, trading volumes for Tesla hadВ been going down as shown by the 20-day average, reinforcing the view that most of the retail trading activity that took place back in 2020 during the health crisis may have already started to fade.В This could lead to a less volatile price action moving forward although interest was piqued by the Hertz announcement in October 2021. However, the oscillator has not moved to negative territory since its 2020 uptrend started, while it recently made a cross above the signal line that was accompanied by steadily higher positive histogram readings. Notably, momentum for Tesla stock had declined sharply after the $900 peak it reached in late January this year,В as reflected by the Moving Average Convergence DivergenceВ but since July it has moved back into the positive. The stock has posted muchВ pronounced higher highs since then, while its uptrend remains intact despite many dips during this 21-month period. Tesla stock analysis: Technical outlookДЄn analysis of TeslaвЂ™s weekly chart shows that the price action has gone parabolic since the pandemic began. In the following article, we take a look at TeslaвЂ™s price action and fundamentals to outline a plausible Tesla long-term forecast for the next fiveВ years. Its current valuation roughly exceeds that of its top five competitors combined.ДЄre these the best days for the US-based electric vehicle manufacturer or is the company poised to keep growing? TeslaвЂ™s long-term goal is to launch an electric-powered vehicle thatвЂ™s affordable for middle-class households and individuals. The journey has not been easy for Tesla, but the company founded and led by Elon Musk has managed to ramp up top-line results at a fast pace in the past few years, while the number of vehicles delivered every year grows.В Then came the news that it had won an order for 100,000 electric vehicles from Hertz, which pushed the shares up a further 14% tipping Tesla into the elite trillion dollar league with the likes of Amazon, Alphabet, Apple and Microsoft. After the news from Hertz, the Tesla share price rose to $1,045. TeslaвЂ™s revenues exceeded analyst estimates, posting $13.76bn (ВЈ10bn, в‚¬11.9bn) up 57% on the same period last year.

Under this deal Hertz will rent 50,000 Teslas to Uber drivers by 2023. Just two days later it brokeВ through the symbolic $1trn mark on the back of a massive order from Hertz, the car rental firm. This phenomenal growth was exemplified in October 2021, when its sharesВ rose to anotherВ new highВ after announcing its third quarterВ results. TheВ global shift toward renewable sources of energy is now well under way and Tesla is in aВ strongВ position to accelerate its growth in the comingВ years. The price growth of Tesla stockВ has been eye-watering since 2020.

#Tesla share price drivers#