Year 2021: Tesla rated ‘Sell' and 'Overvalued’ yet uptrending continued for months
I chose this article which was posted on September 2021 because of the many similarity compared to what we're facing right now about Tesla - share price uptrending, analysts rated the stock as 'sell' and 'overvalued', no one believes Cathie Wood's Tesla share price prediction, Tesla's supply issues etc.
Back then many analysts thought Cathie Wood prediction of Tesla's target price USD 3000 in 5 years from current price USD 750 is ridiculous (that was after 1 to 3 split rose from USD 250 to USD 1000) - sound familiar.
Despite Tesla stock rated 'sell' and 'overbought', share price defied gravity and continued uptrending for 2 months hitting a record high USD 1200 (current pricing about USD 400).
Quote:
Bulls and bears endlessly debate what electric vehicle giant Tesla is worth. On Thursday, a new bear entered the fray. Tudor Pickering analyst Matthew Portillo launched coverage of Tesla (ticker: TSLA) stock with a Sell rating and $537 price target. He covers a mix of energy and automotive names.
Portillo does seem impressed with Tesla’s operations, giving them credit for growing sales, the autonomous driving features and the company’s small stationary power storage business... Still, he calls the stock “fundamentally overvalued,” believing that Tesla would need to ship about 8 million cars that have the ability to drive themselves in cities by 2030 to justify the current stock price. That’s “a tough ask,” according to the analyst.
Portillo does seem impressed with Tesla’s operations, giving them credit for growing sales, the autonomous driving features and the company’s small stationary power storage business... Still, he calls the stock “fundamentally overvalued,” believing that Tesla would need to ship about 8 million cars that have the ability to drive themselves in cities by 2030 to justify the current stock price. That’s “a tough ask,” according to the analyst.
Removing the top and bottom price targets—which skew results—the spread between bulls and bears is about $930. The top target price, at more than $1,000 a share, makes Tesla worth more than $1 trillion. The bottom target prices, at about $200 a share, make Tesla the second most valuable car company in the world, behind Toyota.
Note: After 1 to 3 stock split USD 1000 is another USD 330 current price.
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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CᖇYᑌI᙭ :
bullrider_21 : Close to fairly valued means has topped.
ZnWC OP : Despite rated 'Sell' and 'Overvalued', Tesla's share price continued uptrending for months. Hence it showed that TA indicators are not suitable for growth stock like Tesla and trending market.