Healthy Upside Potential: Tesla Inc. (TSLA)

Tesla Inc. (NASDAQ: TSLA) stock jumped 4.91% on Friday to $133.42 against a previous-day closing price of $127.17. With 138.02 million shares changed hands, the volume of the stock remained heavier than its average volume of 124.72 million shares. During the session, the Auto Manufacturers company that operates in wider Consumer Cyclical sector, reached to the highest price of $133.51 whereas the lowest price it dropped to was $127.35. The 52-week range on TSLA shows that it touched its highest point at $384.29 and its lowest point at $101.81 during that stretch. It currently has a 1-year price target of $196.22. Beta for the stock currently stands at 2.03.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TSLA was up-trending over the past week, with a rise of 7.98%, but this was down by -10.98% over a month. Three-month performance dropped to -39.91% while six-month performance fell -50.90%. The stock lost -59.80% in the past year, while it has gained 8.31% so far this year. A look at the trailing 12-month EPS for TSLA yields 3.25 with Next year EPS estimates of 4.30. For the next quarter, that number is 1.14. This implies an EPS growth rate of 669.20% for this year and 7.01% for next year. EPS is expected to grow by 28.94% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 48.60%.

Float and Shares Shorts:

At present, 3.15 billion TSLA shares are outstanding with a float of 2.64 billion shares on hand for trading. On Oct 13, 2022, short shares totaled 69.09 million, which was 2.19% higher than short shares on Sep 14, 2022. In addition to Mr. Elon R. Musk as the firm’s Technoking of Tesla, CEO & Director, Mr. Zachary John Planell Kirkhorn serves as its Master of Coin & CFO.


Institutional Ownership:

Through their ownership of 44.20% of TSLA’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 26.45% of TSLA, in contrast to 18.44% held by mutual funds. Shares owned by individuals account for 14.94%. As the largest shareholder in TSLA with 6.40% of the stake, The Vanguard Group, Inc. holds 202,187,553 shares worth 202,187,553. A second-largest stockholder of TSLA, BlackRock Fund Advisors, holds 110,843,371 shares, controlling over 3.51% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in TSLA, holding 99,647,239 shares or 3.16% stake. With a 2.59% stake in TSLA, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 81,633,392 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 1.97% of TSLA stock, is the second-largest Mutual Fund holder. It holds 62,043,547 shares valued at 7.64 billion. Invesco QQQ Trust holds 1.03% of the stake in TSLA, owning 32,399,813 shares worth 3.99 billion.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TSLA since 45 analysts follow the stock currently. There are 24 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 12 believe that the stock is worth HOLDING, 5 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TSLA analysts setting a high price target of $436.00 and a low target of $85.00, the average target price over the next 12 months is $214.21. Based on these targets, TSLA could surge 226.79% to reach the target high and fall by -36.29% to reach the target low. Reaching the average price target will result in a growth of 60.55% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TSLA will report FY 2022 earnings on 01/24/2024. Analysts have provided yearly estimates in a range of $4.46 being high and $3.20 being low. For TSLA, this leads to a yearly average estimate of $3.99. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Tesla Inc. surprised analysts by $0.05 when it reported $1.05 EPS against a consensus estimate of $1.00. The surprise factor in the prior quarter was $0.15. Based on analyst estimates, the high estimate for the next quarter is $1.49 and the low estimate is $0.92. The average estimate for the next quarter is thus $1.15.

Summary of Insider Activity:

Insiders traded TSLA stock several times over the past three months with 10 Buys and 75 Sells. In these transactions, 59,183 shares were bought while 41,546,665 shares were sold. The number of buy transactions has increased to 54 while that of sell transactions has risen to 572 over the past year. The total number of shares bought during that period was 344,826 while 59,356,339 shares were sold.

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