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Review of Tesla
24 Jun 2021 (431 views)

Tesla is a remarkable company. 

It is a leader in the production and sale of electric cars. It is highly innovative and has key strengths in several areas that put it ahead of other auto manufacturers. 

Tesla achieved remarkable growth in its stock price in 2020. At the end of that year, the PE ratio is over 1,000 times. However, the revenue and earnings were expected to grow exponentially over the next few years, justifying its high stock price.

It was not smooth going for Tesla. It faced a challenging time during the first half of 2021. 

The stock price reached a peak of $880 on 4 January. It dropped 33% to $597 on 1 March due to market rotation from growth stocks to cyclical stocks. Tesla and other growth stocks dropped in price by up to 30%.

The stock price jumped to $739 after the release of the surprisingly good results for first quarter 2021. 

However, there were several negative factors that led to a drop in price to $580 on 17 May. 

I held 400 shares during most of this period. I sold 200 shares on two occasions and bought them back. 

Two days ago, the share price started to jump. I saw a news that Tesla won several awards. I am looking for the news.

The stock price is now at $675 pre-market. 

I expect the stock to move up further over the next few days. The results for the 2nd quarter should be good.

My target is to sell the stock at $850 (i.e. 25% above current price), but I may sell it earlier.

I may buy 200 more shares.

I hope that this is the right decision.

Caution: This is a personal opinion. I am not giving advice to buy Tesla stock at any specific price.

Tan Kin Lian
 


Review of Tesla
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Tesla is a remarkable company. 

It is a leader in the production and sale of electric cars. It is highly innovative and has key strengths in several areas that put it ahead of other auto manufacturers. 

Tesla achieved remarkable growth in its stock price in 2020. At the end of that year, the PE ratio is over 1,000 times. However, the revenue and earnings were expected to grow exponentially over the next few years, justifying its high stock price.

It was not smooth going for Tesla. It faced a challenging time during the first half of 2021. 

The stock price reached a peak of $880 on 4 January. It dropped 33% to $597 on 1 March due to market rotation from growth stocks to cyclical stocks. Tesla and other growth stocks dropped in price by up to 30%.

The stock price jumped to $739 after the release of the surprisingly good results for first quarter 2021. 

However, there were several negative factors that led to a drop in price to $580 on 17 May. 

I held 400 shares during most of this period. I sold 200 shares on two occasions and bought them back. 

Two days ago, the share price started to jump. I saw a news that Tesla won several awards. I am looking for the news.

The stock price is now at $675 pre-market. 

I expect the stock to move up further over the next few days. The results for the 2nd quarter should be good.

My target is to sell the stock at $850 (i.e. 25% above current price), but I may sell it earlier.

I may buy 200 more shares.

I hope that this is the right decision.

Caution: This is a personal opinion. I am not giving advice to buy Tesla stock at any specific price.

Tan Kin Lian