Exercise caution with Tesla …

Tesla’s P/E ratio – a warning signal?

The lower a stock’s price-earnings ratio (P/E ratio), the cheaper it appears at first glance. Growth stocks usually have a higher P/E ratio. Tesla, with a value of 103.92, is above the average for its peer sector. The exact gap is currently 165 percent with an average P/E ratio for the “Automobiles” sector of 39.27. Due to the relatively high P/E ratio, the stock can be described as “expensive” and therefore receives a “Sell” based on fundamental criteria.

What signals can investors take from the RSI?

The Relative Strength Index (shortRSI) relates the upward and downward movements of an underlying over time and is thus a good indicator of overbought or underbought stocks. The RSI of the last 7 days for Tesla stock has a value of 63.69. On this basis, the stock is thus neither overbought nor -sold and receives a “hold” rating. We now compare the 7-day RSI with the value of the RSI on a 25-day basis (58.2). Here, too, Tesla is neither overbought nor sold (value58.2), thus the stock also receives a “hold” rating for the RSI25. In sum, this therefore results in a “Hold” rating for Tesla according to RSI valuation.

Tesla in downtrend according to chart

The 200-day line (GD200) of Tesla currently runs at 266.97 USD. This gives the stock a “Sell” rating, insofar as the share price itself exited trading at USD 182.86, thus establishing a gap of -31.51 percent. The relationship is different compared to the moving average price of the past 50 days. The GD50 has currently assumed a level of 226.48 USD. This, in turn, corresponds to the current difference of -19.26 percent for Tesla shares, and thus a “sell” signal. The overall finding based on the two time periods is therefore “Sell”.

How do shareholders assess the situation?

An evaluation of the rate of change in sentiment and the intensity of discussion reveals the following pictureDuring the past month, investor sentiment became increasingly gloomy. Therefore, we rate this item as Sell. Let’s look at the intensity of discussions from last month. This provides information on whether a stock tends to receive a lot or little attention. The company was discussed less than before and moved out of the focus of investors. This leads to a “sell” rating. This gives Tesla stock a “sell” rating.

Clear sentiment signal on the part of investors?

The mood on social networks has been predominantly negative in recent days. On four days, the discussion was dominated by positive topics, while negative communication prevailed on seven days. In the past one or two days, on the other hand, investors talked more about positive topics related to Tesla. As a result, the editorial team rates the share with a “hold”. Statistical evaluations based on large historical data volumes have revealed an overhang of buy signals in the past two weeks. Specifically, there were 5 “buy” signals (with 0 “sell” signals) based on communications, resulting in a “buy” rating for this criterion. In summary, this results in a “Hold” rating for investor sentiment.

How well does the stock perform in a sector comparison?

The stock has returned 17.95 percent over the past year. Compared to stocks in the same sector (“Consumer Cyclicals”), this puts Tesla 22.33 percent below the average (40.28 percent). The median annual return for securities from the same sector “automobiles” is 22.48 percent. Tesla is currently 4.53 percent below this figure. Due to the underperformance, we rate the stock an overall “Sell” at this level.