The S&P 500 (INDEXSP:.INX) has been showing some weaknesses in the market for the current week as it’s price fell by about 1%, down to approximately $1980. Since Tesla Motors Inc (NASDAQ:TSLA) is among the momentum stocks, with almost 67% year to date growth, it’s bound to fall in price as the market senses troublesome moments, even the ones that last little time. Yahoo! Finance presented a general and a technical analysis of Tesla Motors Inc (NASDAQ:TSLA)’s value and its future swings.
Most of the current value is strongly correlated to the Gigafactory project, on which the electric car manufacturer is currently working. Besides, Tesla Motors Inc (NASDAQ:TSLA) also disclosed very optimistic guidance regarding vehicles to be produced.
“[…] Tesla’s very much an option in a lot of ways, because if they can achieve what they’re aiming to achieve, this stock, even at 238 times forward estimated earnings, is still actually potentially cheap. But, right now you’re looking at a situation where they may fall short of their 2015 target of 100,000 cars,” said Gina Sanchez of Chantico Global.
Taking a more technical attitude towards the price curve, one can see that Tesla Motors Inc (NASDAQ:TSLA)’s value per share has met resistance in reaching the key $300 spot and its current uptrend can end in a collapse of the price. The 200-day moving average is way below the all-time numbers for the same statistic and might indicate a pessimistic future for the electric car company.
“I think we’re going to see $212, maybe even $200 in the short term. I would be a seller of this stock right here. Even for longer term investors this is not a compelling entry point, you can be patient on Tesla,” stated Richard Ross of Auerbach Grayson Global Technical Strategist.
Wrapping all up, it’s difficult to have a clear overview of Tesla Motors Inc (NASDAQ:TSLA)’s stock price movements, so it’s currently better to invest some patience, instead of liquidity, in the company.
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