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Review of Tesla (TSLA) stock
05 Mar 2021 (272 views)

Tesla increased 8 times in 2020 to reach a high of $900 at the start 2021. I sold off all my stock when it was at $750 and did not hold any stock during the run up.

Tesla has since dropped 33% to a current price of $603. I bought 100 shares on the way down at $711 and now show a loss of $9.800 USD. This is small compared to the gain that I realized in 2020.

I find the price of $603 to be attractive. Tesla has the following positive factors:

1.  It has a leading position in the electric vehicle market and has battery technology and softare technology that are ahead of the competitors.

2.  It may introduce a robotaxi service (i.e. a taxi service run on autonomously driven vehicles) that will be super competitive compared to the normal taxi or hired car service.

3.  Its energy business (solar roof, power wall and power packs) is likely to show significant growth in the near future.

It has negative points:

4.   It will face growing competition in th electric vehicle market from the establised auto manufacturers (that have made a big commitment to move into the EV market) and from new EV startups  from China

5. It current price is high, relative to its financials. It has a price earning ratio (PER) of 971 based on 2020 profit and a forward PE ratio of 113 (which is still high).

On balance, I find the current price to be attractive and will increase my holdings.

Note - this is my personal opinion. It is not financial advice. Please do your own due diligence before you decide to invest in any stock that is covered by me.

Tan Kin Lian

 

 

 



Review of Tesla (TSLA) stock
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Tesla increased 8 times in 2020 to reach a high of $900 at the start 2021. I sold off all my stock when it was at $750 and did not hold any stock during the run up.

Tesla has since dropped 33% to a current price of $603. I bought 100 shares on the way down at $711 and now show a loss of $9.800 USD. This is small compared to the gain that I realized in 2020.

I find the price of $603 to be attractive. Tesla has the following positive factors:

1.  It has a leading position in the electric vehicle market and has battery technology and softare technology that are ahead of the competitors.

2.  It may introduce a robotaxi service (i.e. a taxi service run on autonomously driven vehicles) that will be super competitive compared to the normal taxi or hired car service.

3.  Its energy business (solar roof, power wall and power packs) is likely to show significant growth in the near future.

It has negative points:

4.   It will face growing competition in th electric vehicle market from the establised auto manufacturers (that have made a big commitment to move into the EV market) and from new EV startups  from China

5. It current price is high, relative to its financials. It has a price earning ratio (PER) of 971 based on 2020 profit and a forward PE ratio of 113 (which is still high).

On balance, I find the current price to be attractive and will increase my holdings.

Note - this is my personal opinion. It is not financial advice. Please do your own due diligence before you decide to invest in any stock that is covered by me.

Tan Kin Lian