The first quarter of 2024 was brutal for Tesla (TSLA). The company had nothing but bad news to report – from price cuts to layoffs to recalls. But, TSLA investors finally have something to be excited about.
The EV manufacturer teased its Q2 results yesterday, which are set to be fully disclosed on July 19th. In the meantime, we know that deliveries were up for the quarter to 443,956 vehicles. 422,405 of those were deliveries of Model 3 or Model Y.
While this was still a 4.8% drop year over year, it was a massive improvement from the previous quarter, up nearly 15%. This will be the first time Tesla beats the consensus in over a year.
Last quarter the news cycle was primarily negative, with questions surrounding the compensation package Elon Musk is earning, bad press for the Cybertruck. The company also had to report price cuts on three different models alongside the elimination of its charging and new car and public policy teams.
TSLA fell as much as 43% at one point this year, hitting rock bottom in April. The road to recovery has been well underway the past 3 months, though. The stock is up nearly 49% in that timeframe, and up 30% this week alone and 6% today. Things are clearly moving in the right direction.
This has forced analysts to reframe their outlook and raise their price targets on TSLA. Wedbush analysts see this as the turning point the company needed, with price cuts in the past and demand stabilizing worldwide.
So, is this your sign to buy TSLA ahead of the official results being released in less than 3 weeks? Not so fast. We’ve taken a look at this stock through the VectorVest stock forecasting software and still see a few issues. Here’s what you need to know…
TSLA Still Has Very Poor Upside Potential Despite Very Good Safety and Excellent Timing
VectorVest is a proprietary stock rating system that takes complex technical and fundamental data and distills them into clear, actionable insights. It’s designed to save you time and stress while empowering you to win more trades.
You’re given everything you need to make calculated, emotionless decisions in 3 ratings: relative value (RV), relative safety (RS), and relative timing (RT). Each sits on a scale of 0.00-2.00 with 1.00 being the average, making interpretation quick and easy.
Better yet, you’re given a buy, sell, or hold recommendation for any given stock at any given time based on its overall VST rating. Here’s what we uncovered for TSLA:
- Very Poor Upside Potential: The RV rating compares a stock’s long-term price appreciation potential (forecasted 3 years out), AAA corporate bond rates, and risk. This makes it a far superior indicator than the typical comparison of price to value alone. TSLA has a very poor RV rating of 0.20. The stock is overvalued with a current value as low as $44.33/share.
- Very Good Safety: The RS rating assesses the risk profile of a stock. It’s derived from a deep analysis of the company’s financial consistency & predictability, debt-to-equity ratio, business longevity, sales volume, price volatility, and other factors. TSLA has a very good RS rating of 1.27 right now.
- Excellent Timing: The RT rating is a trend analysis based on the direction, dynamics, and magnitude of the stock’s price movement. It’s calculated day over day, week over week, quarter over quarter, and year over year. TSLA has an excellent RT rating of 1.76, reflecting its rally since April.
The overall VST rating of 1.32 is very good, but the stock is still rated a HOLD for the time being. This could change at any time, though, so stay up to date and get a free stock analysis at VectorVest today so you can make your next move with complete confidence and clarity. You’re not going to want to miss this opportunity!
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VectorVest advocates buying safe, undervalued stocks, rising in price. TSLA finally had some good news to share with investors - its deliveries were up for the most recent quarter, representing the first beat in over a year. The stock itself may have very poor upside potential still, but it has very good safety and excellent timing.
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