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My view about Tesla (TSLA)
18 Apr 2021 (328 views)

I hold 400 shares of Tesla at a cost of $649. The current price is $739. The value of my stock is $295,000 USD. The gain is $36,000.

I want to show my opinion of this stock. (Note - this is just my personal opinion. I do not recommend a buy or sell of this stock at any specific price).

The earnings for 1Q 0f 2021 will be released on 26 April. The analyst expects the results to be strong due to the strong delivery for the first quarter. Tesla should also be reporting the a huge profit from its investment in bitcoin. Although this is a one time affair, and is not likely to be repeated, it should still boost the financial figures. 

The PE ratio of Tesla is 1,150. It is an insanely high figure. Several analysts find Tesla to be over valued and use this figure to justify a much lower price for Tesla. 

The average of the estimated EPS for Tesla for 2021 from analysts is $4.28. This gives a PE ratio of 172 times based on its current price of $740.

I expect the EPS of Tesla to at least double in 2022, due to the higher production from two new giga factories (in Berlin and Texas) and the expansion of their Shanghai factory. This would bring the PE ratio down to an acceptable 86 times. (Note - the analyst project a lower increase of 37% in EPS for 2022).

Tesla is way ahead of its competitors, including the large legacy manufacturer that are now moving into the electric vehicle market. Its competence are its battery technology, brand recognition, direct marketing channel, range of models and manufacturing scale and its software (i.e. over the air update and autonomous driving).

Tesla should be able to produce its vehicles a a lower cost than its competitors. This will allow Tesla to price its vehicles competitively and sell all the vehicles that it can produce. It will also allow Tesla to have a larger profit margin compared to its competitors. 

I have a high level of conviction for Tesla and will be holding the stock until it reach a price of $800 or $850. I believe that this is achievable during this year. 

I hope to have good luck.

Tan Kin Lian


 


My view about Tesla (TSLA)
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I hold 400 shares of Tesla at a cost of $649. The current price is $739. The value of my stock is $295,000 USD. The gain is $36,000.

I want to show my opinion of this stock. (Note - this is just my personal opinion. I do not recommend a buy or sell of this stock at any specific price).

The earnings for 1Q 0f 2021 will be released on 26 April. The analyst expects the results to be strong due to the strong delivery for the first quarter. Tesla should also be reporting the a huge profit from its investment in bitcoin. Although this is a one time affair, and is not likely to be repeated, it should still boost the financial figures. 

The PE ratio of Tesla is 1,150. It is an insanely high figure. Several analysts find Tesla to be over valued and use this figure to justify a much lower price for Tesla. 

The average of the estimated EPS for Tesla for 2021 from analysts is $4.28. This gives a PE ratio of 172 times based on its current price of $740.

I expect the EPS of Tesla to at least double in 2022, due to the higher production from two new giga factories (in Berlin and Texas) and the expansion of their Shanghai factory. This would bring the PE ratio down to an acceptable 86 times. (Note - the analyst project a lower increase of 37% in EPS for 2022).

Tesla is way ahead of its competitors, including the large legacy manufacturer that are now moving into the electric vehicle market. Its competence are its battery technology, brand recognition, direct marketing channel, range of models and manufacturing scale and its software (i.e. over the air update and autonomous driving).

Tesla should be able to produce its vehicles a a lower cost than its competitors. This will allow Tesla to price its vehicles competitively and sell all the vehicles that it can produce. It will also allow Tesla to have a larger profit margin compared to its competitors. 

I have a high level of conviction for Tesla and will be holding the stock until it reach a price of $800 or $850. I believe that this is achievable during this year. 

I hope to have good luck.

Tan Kin Lian