We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tesla Still Overvalued, But Not as Much as the S&P 500
Read MoreHide Full Article
Tesla’s (TSLA - Free Report) stock continues to slide, even after an event that talked up technological advancements that could allow a 56% reduction in cost, a 69% reduction in gigafactory investments and a 54% increase in range within the next three years.
Not only that – the company now expects to meet its previous guidance for a 36% increase in vehicle deliveries this year. That’s a big positive considering that management had doubts about achieving the target in July and also because most other automakers (traditional ones) aren’t expecting to grow at all.
“In about three years from now, we are confident we can make a compelling $25,000 electric vehicle that is also fully autonomous,” said Tesla CEO Elon Musk.
The long-term target is 20 million cars a year. We’re currently at 500,000, so it’s safe to say that this is still rather a long way off. But it’s close enough for the company to double down on battery production by taking some of the work in-house.
You’d think that investors would be happy with these developments. But no, they’re still selling. Maybe they’re just used to more (the stock is up more than 354% this year, even including the bashing over the last few days).
Or maybe they thought there was some magic up Musk’s sleeves that would miraculously drive up the next quarter’s earnings. Or maybe the current year’s.
Real technological development doesn’t happen overnight. And when the leading innovator just announced stuff that can only consolidate its leadership, this is something to take notice of.
So I like Tesla’s slide. I think it creates another opportunity to dive into the shares of this really innovative company with years and years of growth ahead of it that will be spurred on by environmental concerns, stringent regulations and the EV attaining cost parity with gasoline vehicles.
Have Tesla shares bottomed? Perhaps not. But at 12.12X sales, they aren’t that expensive any more. Especially since there’s the promise of 35.0% growth over the next 3-5 years (not adjusted for the latest announcements).
Plus, the S&P 500 on the other hand, is trading at its annual high of 4.53X while Tesla is 23.4% off.
I just don’t see the sense in selling Tesla shares. Hold them, buy them, but selling seems plain irrational.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Shutterstock
Tesla Still Overvalued, But Not as Much as the S&P 500
Tesla’s (TSLA - Free Report) stock continues to slide, even after an event that talked up technological advancements that could allow a 56% reduction in cost, a 69% reduction in gigafactory investments and a 54% increase in range within the next three years.
Not only that – the company now expects to meet its previous guidance for a 36% increase in vehicle deliveries this year. That’s a big positive considering that management had doubts about achieving the target in July and also because most other automakers (traditional ones) aren’t expecting to grow at all.
“In about three years from now, we are confident we can make a compelling $25,000 electric vehicle that is also fully autonomous,” said Tesla CEO Elon Musk.
The long-term target is 20 million cars a year. We’re currently at 500,000, so it’s safe to say that this is still rather a long way off. But it’s close enough for the company to double down on battery production by taking some of the work in-house.
You’d think that investors would be happy with these developments. But no, they’re still selling. Maybe they’re just used to more (the stock is up more than 354% this year, even including the bashing over the last few days).
Or maybe they thought there was some magic up Musk’s sleeves that would miraculously drive up the next quarter’s earnings. Or maybe the current year’s.
Real technological development doesn’t happen overnight. And when the leading innovator just announced stuff that can only consolidate its leadership, this is something to take notice of.
So I like Tesla’s slide. I think it creates another opportunity to dive into the shares of this really innovative company with years and years of growth ahead of it that will be spurred on by environmental concerns, stringent regulations and the EV attaining cost parity with gasoline vehicles.
Have Tesla shares bottomed? Perhaps not. But at 12.12X sales, they aren’t that expensive any more. Especially since there’s the promise of 35.0% growth over the next 3-5 years (not adjusted for the latest announcements).
Plus, the S&P 500 on the other hand, is trading at its annual high of 4.53X while Tesla is 23.4% off.
I just don’t see the sense in selling Tesla shares. Hold them, buy them, but selling seems plain irrational.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>