Tesla - Is Hype Over or Can We Still Expect Miracles from Musk?

6 במאי 2022

When there is hysteria in the market, sky-rocketing inflation, geopolitical risks and the slowdown of the economy can Tesla still update its historic high before global correction?

Fundamental indicators:

• Revenue and Profits - quarterly earnings are beating wall street expectations
  
• Profit margin - getting into double digits with 17% however it's nowhere near enough effective with the current P/E
  
• P/E - outrageously high ratio of 105x
  
• Liabilities - no problems with debt
  

Technical Analysis (Elliott Waves):

• Since the fall of 2020 Tesla has enjoyed enormous 1600% increase in share price - no one can deny that it's a bubble of extreme proportions
  
• The crux of the Elliott Wave count is the movement between January 2021 and February 2022 - in this scenario a Running Correction is proposed as wave 4
  
• Therefore, fifth wave is currently developing and considering choppy movement it is likely to be an Ending Diagonal with 3-3-3-3-3 structure
  
• Wave 1 of this diagonal has been completed and wave 2 with ABC zigzag is still developing which may reach $756 before turning around and starting wave 3
  

What do you think about this scenario on Tesla?

Please share your thoughts in the comments and like this idea if you would like to see more stocks analysed using Elliott Waves.

Thanks