tesla set to plunge almost 20% from here? - residential energy storage systems
Tesla shares (TSLA -Get Report)closed down 3. 79% to $287. 59 Wednesday.
The stock has been under pressure over the last few meetings, mostly caused by an internal email that says, among other things, the fourth-
Quarterly earnings may fall below third quarterQuarterly results.
When these quartersto-
This is not the worst news in the world. -
At least Tesla is profitable now. -
It did cause a 13% sensation in stock prices.
More importantly, however, as Tesla's 2019 convertible bonds expire on March 1, the news has brought Tesla's share price below a key level.
The conversion price is $359.
88, if the price is close to that level after the stock expires, Tesla will have to pay back $0. 92 billion in cash.
Tesla shares have been weak due to the news.
But RBC analyst Joseph Spak cut his price target and lowered his rating on Wednesday morning, which didn't help.
The analyst now sees Tesla as underperforming, below market performance, and has lowered his price target from $290 to $245.
By Tuesday's close, the share price fell nearly 20%.
Spak did something similar, with David Tamberrino, an analyst at Goldman Sachs, posting several negativearguments the day before and maintaining its selling rating and $225 price target.
Spak pointed out that even if Tesla produced 1 million Model 3 at an average price of $55,000, with a profit margin of 12%, it had not raised equity by 2025, and the value of the stock was still high.
About the stock price, he said, "at least one --
The third price today is the Elon premium.
"The current valuation has taken into account the high expectations," he added . ".
Sparks admits some of Tesla's recent moves-
For example, reduce the price of cars by $2,000. -
Become more realistic.
Nevertheless, he believes that "the current valuation has taken into account the high expectations.
"There is no doubt that compared with other automakers such as General Motors (GM -Get Report), Ford (F -Get Report)
Fiat Chrysler (FCAU -Get Report), Daimler (DDAIF)
Tesla's valuation is also very high.
But six years from now, Tesla's future catalyst is not optimistic.
For example, what about the Y, Tesla half, sports car, Y and Tesla pickup?
What about Tesla energy even without considering the solar roof?
And the company's self-driving software.
You can say that other automakers have similar technology. -like GM --
But at the same time, we also saw Alphabet (GOOGL -Get Report)(GOOGL -Get Report)self-
Waymo has $175 billion in driving units.
Investors can debate the value of Tesla's own sector, but certainly not zero.
The same is true of its energy component.
Create energy storage systems for cities and homes, and create efficient and independent energy systems for customers.
This creates value, although it is not the unit that talks the most about within the company.
I'm not saying that Sparks is going to ignore it all.
It's just that it's very, very difficult to make predictions so far, especially for companies like Tesla.
As for share prices, close below 200 per week-
Moving averages will be frustrating this week.
However, the closing price below $250 will be shocking.
It is worth noting that if Tesla reaches the latter level, it will bring the share price close to the price target of spark.
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