Will Tesla (NASDAQ:TSLA) continue to grow in December?

All Stories . Leverage . 
Aina Ster .  Story
TSLA Stock  USD 194.76  4.78  2.52%   
Aina Ster
By Aina Ster
Macroaxis Story
The stock is undergoing above-average trading activities. Tesla Net Income Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 55,585. The current year Revenue Per Employee is expected to grow to about 584.9 K, whereas Earnings before Tax are forecasted to decline to (1 B). While some millenniums are indifferent towards consumer cyclical space, it makes sense to go over Tesla Inc as a unique investment alternative. Let's try to analyze if Tesla shares are reasonably priced going into December.
Published over two months ago
View all stories for Tesla | View All Stories
The company currently holds 5.87 B in liabilities with Debt to Equity (D/E) ratio of 0.14, which may suggest Tesla Inc is not taking enough advantage from borrowing.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Tesla has an asset utilization ratio of 927.87 percent. This suggests that the company is making $9.28 for each dollar of assets. An increasing asset utilization means that Tesla Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Tesla financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Tesla, including all of Tesla's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Tesla assets, the company is considered highly leveraged. Understanding the composition and structure of overall Tesla debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Tesla Total Debt

Tesla Inc liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Tesla Inc has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Tesla balance sheet include debt obligations and money owed to different Tesla vendors, workers, and loan providers. Below is the chart of Tesla main long-term debt accounts currently reported on its balance sheet.
You can use Tesla Inc financial leverage analysis tool to get a better grip on understanding its financial position

How important is Tesla's Liquidity

Tesla financial leverage refers to using borrowed capital as a funding source to finance Tesla Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Tesla financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Tesla's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Tesla, but it might be worth checking our own buy vs. sell analysis

Exercise or conversion by Kathleen WilsonThompson of 26250 shares of Tesla subject to Rule 16b-3

Legal trades by Tesla insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Tesla insider trading alert for exercise of non-qualified stock option (right to buy) by Kathleen WilsonThompson, the corporate stakeholder, on 12th of September 2022. This event was filed by Tesla Inc with SEC on 2022-09-12. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

An Additional Perspective On Tesla Inc

The big decline in price over the last few months for Tesla created some momentum for investors as it was traded today as low as 185.66 and as high as 192.57 per share. The company directors and management failed to add value to investors and position the company supply of money to exploit market volatility in October. However, diversifying your holdings with Tesla Inc or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.41. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Tesla Inc partners.

Asset Breakdown

Assets Non Current
29.2 B
Current Assets
Total Assets67.04 Billion
Current Assets29.24 Billion
Assets Non Current5.13 Billion

Another small slip for Tesla

The total risk alpha is down to -0.71 as of today.
As of the 19th of November, Tesla has the risk adjusted performance of (0.30), and Coefficient Of Variation of (463.38). In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Tesla Inc, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to break down and interpolate nineteen technical drivers for Tesla Inc, which can be compared to its competition. Please validate Tesla Inc jensen alpha, potential upside, as well as the relationship between the Potential Upside and skewness to decide if Tesla is priced more or less accurately, providing market reflects its prevalent price of 180.19 per share. Given that Tesla Inc has jensen alpha of (0.72), we advise you to double-check Tesla Inc's current market performance to make sure the company can sustain itself at a future point.

Whereas some companies in the auto manufacturers industry are either recovering or due for a correction, Tesla may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 19th of November 2022, we see that Tesla responds to the market. The company is undervalued with very low odds of financial turmoil within the next 24 months. Our concluding 90 days buy-sell recommendation on the company is Cautious Hold.

Editorial Staff

Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Tesla Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2023 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY