TESLA (TECHNICAL, FUNDAMENTAL S) ANALYSIS

IN THE NAME OF ALLAH THE MOST GRACIOUS THE MOST MERCIFUL

INTRO

TODAY TESLA ENTERS AS BENCHMARK‘S FIFTH LARGEST STOCK,WITH A WEIGHTING OF 1.69% AND MARKET VALUE OF AROUND $695.bn FOLLOWING FRIDAY‘S RECORD HIGH CLOSE OF $695 PER SHARE

TESLA JOINED RUSSELL 1000 STOCK INDEX BACK IN SEPTEMBER 2010, PRICED AT JUST $4.40 A SHARE,AND ZOOMED INTO THE RIVAL NASDAQ 100 BENCHMARK IN JULY 2013,WHEN IT WAS TRADING AT $26 A POP, ITS SHARES HAVING CLIMBED 730% SINCE THE START OF THE YEAR,DESPITE THAT THE ANALYSTS‘ COMMUNITY IS DIVIDED OVER THE STOCK‘S PERFORMANCE IN 2021 AND IF THE FIRM HAS A FUNDAMENTALS THAT JUSTIFY ITS RISE BY MORE THAN 700% THIS YEAR

TO ANSWER THESE QUESTIONS, I DO THINK IT IS NECESSARY TO DIVIDE  THE ANSWER INTO A TECHNICAL , FUNDEMENAL ANALYSIS

TECHNICACALLY SPEAKING, I MENTIONED EARLY FROM  ELLIOTT WAVE ANALYSIS THAT TESLA IS IN THE PRIMARY THIRD WAVE,FORTUNTATELY FOR INVESTORES IN THIS STOCKTHE THIRD WAVE EXTENSION OF THIRD WAVE EXTENSION HAS OCCURED, IT IS KNOWN ABOUT THE THIRD WAVE THAT IS THE STRONGEST WAVE EVER AND ALWAYS CARRIES PRICES TO  NEW HIGHS, WHICH MAKE THE FUNDAMENTALS ANALYSTS FEEL THAT STOCKS ARE OVERVALUED AND DECRY THE RUN AS A BUBBLE 

THIS IS THE MOST IMPORTANT DIFFERANENCE BETWEEN TECNICAL AND FUNDAMENTALS ANALYSIS.

TECHNICAL ANALYSIS BELIEVES IN INVESTORS PSYCHOLOGY AND THAT THERE IS WHAT IS KNOWN AS A "PATTERN" THAT SHOULD BE COMPLETED FIRST FOR MAJOR PRICE TREND TURNS

PATTERN MAYBE AN ELLIOTT WAVE OR A  CLISSICAL CHART PATTERN, SO INVESTOR‘S PSYCHOLOGY IS CHARTED MARKET TRENDES, INVESTOR‘S PSYCHOLOGY CAN BE 

SUMMARIZED SIMPLY IN OPTIMISM AND PESSIMISM TOWARDS THE MARKET

SO I WOULD NOT BE SURPRISED IF PRICE CONTINUE TO RISE TOWARDS $1000 DURING THIS WAVE, OR A LIKELY DURING THE FIFTH WAVE , AS IT HAS SOMETHING EXTRA TOO, WNICH IS KNOWN DOUBLE EXTENSION( IN THE THIRD AND FIFTH WAVES TOGETHER) SO I CONFIRM DESPITE THE RAPID RUN HIGHER, TESLA HAS PLENTY OF UPSIDE AHEAD,I REPEAT AGAIN COULD HIT $1000 OR EVEN MORE 

FUNDEMENALLY SPEAKING:-  FIRST WE SHOULD ANSWER THE KEY QUESTION IS TESLA AN AUTO MAKER ? OR IS IT A TECHNOLOGY COMPANY OR IS IT SOME SORT OF AN AMALGAMATION OF BOTH

I THINK TESLA‘S CURRENT VALUATION DOES NOT IMPLY THAT IT‘S JUST A CAR COMPANY, MORGAN STANLEY RASIED TESLA TO OVERWIGHT FOR THE FIRST TIME IN MORE THAN THREE YEARS, PRIDICTING THAT TESLA IS ON THE VERGE OF A PROFOUND MODEL SHIFT FROM SELLING CARS TO GENERATING HIGH MARGIN SOFTWARE AND SERVICES REVENUE, THIS LOOK TAKES YO AWAY FROM COMPARING TESLA TO CAR COMPANIES ONLY AND SHOULD RATHER BE COMPARED TO SOFTWARE AS A SERVICE COMPANIES,IN ADDITION TESLA HAS UNDERTAKEN A MASSIVE EXPANSION OF MANUFACTURING , MUSK WANTS TO EVENTUALLY BUILD 20 MILLION ELECTRICAL VEHICLES A YEAR OVER THE NEXT DECADE, MORE THAN DOUBLE THE CURRENT PRODUCTION OF OTHER AUTO MAKING GIANTS , SO IT‘S NOW ON A MISSION TO RAPIDLY EXPAND ITS MANUFACTURING CAPABILITIES, WHICH ALLOWS THE COMPANY TO DOMINATE THE GLOBAL AUTO CAR MARKET DURING THE FEW NEXT YEARS, ALSO JOIN THE S&P 500 FORCING FUNDS THAT FOLLOW THE INDEX TO BUY SHARES,THAT IS EXPECATED TO SPARK A FLURRY OF FUNDING TRADES IN TESLA STOCK, PERHAPS ESTIMATED AT $80bn WHICH THE COMPANY USE FURTHER EXPANSION OR ADDING SOME SERVICES TO DEVLOP SOME MODLES LIKE MODEL 3 , MODEL Y OR CYBERTRUCK,WHICH HAS STRONG DEMAND FOR THESE MODELS

ALSO, ITS GROWING BATTERY, SOLAR AND AUTONOMOUS DRIVING DIVISIONS WILL FUEL FUTURE GAINS

FINALLY DONT FORGET THAT, INVESTORS BELIIEVE TESLA IS POISED TO LEAD A TRANSITION TO ELECTRIC CARS,AND DESPITE THE GROWING COMPETION, MUSK HAS MAINTAINED A HIGH LEVEL OF CONFIDENCE AND IN HIS VISION

 SO, ALL THESE FACTORS FAVOR THE POSITIVE OUTLOOK OF THE STOCK,AND THE ANNUAL GROWTH IN REVENUE THAT WALL STREET IS EXPECTED AT 26% IN 2020 ACCELERATE FURTHER IN 2021, AND PROJECTED ANNUEL SALES GROWTH OF 17%, NOT ONLY THAT, BUT DOES PUSH  MUSK TO CONTROL THE HUGE MARKET,WHICH IS EXPECTED RECHING AN ANNUAL VALUE OF 733 bn BY 2026 WITH A COMPOUND ANNUAL GROWTH RATE OF 5.2% DURING THE 2019-2026 

ASIDE NOTE:- 1- TESLA STOCK GETS HIGH COMPOSITE RATING

THE IBD STOCK CHECKUP TOOL SHOWS THAT TESLA HAS A BEST POSSIBLE IBD COMPOSITE RATING OF 99 OUT OF 99, THE RATING MEANS TESLA STOCK CURRENTLY OUTPERFORMS 99% OF ALL STOCKS IN TERMS OF THE MOST IMPORTANT FUNDAMENTAL AND TECHNICAL S

WROTE WEDBUSH SECURTIES ANALYST DAN IVES, GLOBAL DEMAND FOR ELECTRIC VEHICLES COULD RECH 10% OF AUTO SALES BY 2025, UP FROM ITS CURRENT 3% SO TESLA SHARES COULD DOUBLE FROM CURRENT LEVELS AS GLOBAL ELECTRIC VECHICLE DEMAND RAPS UP OVER THE NEXT FIVE YEARS, HE RAISED HIS PRICE TARGET TO $560 A SHARE AND HIS BULL CASE SENARIO TO $1000 ON THE BELIEF THAT TESLA COULD DELVER 1 MILLION VEHICLES BY 2023, POSSIBLY 2022
https://www.foxbusiness.com/markets/tesla-stock-1000-global-demand-soars