Is Tesla (NASDAQ:TSLA) a good short-term trade as volatility builds up?

TSLA
 Stock
  

USD 195.29  0.59  0.30%   

Lets try to go over the odds of Tesla to fully recover from the current slip as its shares went up 6.38%. The company current daily volatility is 3.56 percent, with a beta of 1.22 and an alpha of -0.81 over DOW. While some of us are getting more passionate about driverless cars, it makes sense to go over Tesla Inc in greater detail to make a better estimate of its volatility. I will address the reasons why this entity does not get much respect from investors under the current market uncertainty.
Published six days ago
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Tesla Inc currently holds roughly 21.11 B in cash with 16.03 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 6.68.
Macroaxis provides recommendation on Tesla Inc to complement and cross-verify current analyst consensus on Tesla Inc. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Investing in Tesla, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Tesla along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Tesla's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Tesla in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Tesla. Your research has to be compared to or analyzed against Tesla's peers to derive any actionable benefits. When done correctly, Tesla's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Tesla Inc.

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

Tesla Correlation with Peers

Investors in Tesla can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Tesla Inc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Tesla and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Tesla is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Tesla for more details

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

Tesla Inc owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.2, which indicates the firm had -0.2% of return per unit of risk over the last 3 months. Macroaxis standpoint towards measuring the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Tesla Inc exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Tesla coefficient of variation of (462.35), and Risk Adjusted Performance of (0.30) to confirm the risk estimate we provide.
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0.690.660.670.7
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Over 3 percent rise for Tesla. What does it mean for investors?

Current coefficient of variation indicator falls down to -462.35. Possible price jump? Tesla Inc exhibits very low volatility with skewness of -0.19 and kurtosis of -0.08. However, we advise investors to further study Tesla Inc technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Tesla's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Tesla's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

The Current Takeaway on Tesla Investment

Whereas some firms under the auto manufacturers industry are still a bit expensive, Tesla may offer a potential longer-term growth to investors. On the whole, as of the 23rd of November 2022, we believe that Tesla is currently undervalued with very small chance of bankruptcy in the next two years. Our actual 90 days recommendation on the company is Hold.

Editorial Staff

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 Gabriel Shpitalnik do not own shares of Tesla Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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