Tesla Motors -TSLA - Daily - Fundamental Valuation Graph

6 mar 2015

There are many variables shown on this graph, the most important one is the fact that TSLA is at the lowest PSR (Price-to-Sales Ratio) going back to the summer of 2013 when it bottomed near 6 times sales. TSLA is now at 7.9 times sales and could very well be suffering from the new round of cars at the Geneva Auto Show where the Volkswagen Diesel Electric looks stunning in both styling and raw power from dual electric motors and relatively low cost to the good old Model-S and Model-D. There is nothing like good old fashioned competition in the marketplace. Tesla is facing it from all fronts and investors are nervous. For now, until profits roll in, and until the Model-X (gull-wing SUV crossover) is sold, TSLA is just "holding on".

What I'm seeing here is that TSLA is in a confirmed downtrend and it has fallen a similar percentage amount as it had in the fall of 2013 (See -40% drop) and the spring of 2014 (See the -34% drop) with its current 37% drop off of the high back in September which happened after a great earnings report and a string of analyst initiates and upgrades and very high targets set. The current correction has seen almost 14 days in a row where volume and price range expanded on the downside signifying strong selling by investors and traders. That kind of continuous selling should be alerting us to look for a bottom down here somewhere, which is why I have this as a "LONG" idea here.

The old level of valuation isn't holding at 10 times sales, so it is trying to find somewhere down here to hold.

Call me a die-hard fan of Tesla as I know I'd like to own one. If every one of my subscribers here would just send Tesla $1 each month, then I could lease 3 or 4 of them. One for me and the rest for you, in a lottery of my lucky subscribers. TradingView, can you manage that project for me? (I'm kind of kidding, but I'd love to see that happen).

Cheers.

Tim
March 5, 2015 11:35PM EST 200.63 last