Despite not being the center of the labor dispute in the automotive industry, all eyes are on Tesla (TSLA) right now. The company doesn’t have a union-based workforce – so while GM, Ford, and Chrysler face challenges in light of a strike, Tesla should be able to pull ahead in the EV race.
However, it doesn’t appear that the UAW (United Autoworkers Association) strike has the support needed to really pose a threat to long-term goals. Wall Street was expecting more of a setback, and like many things, they overhyped it.
Should the strike end up gaining momentum and persisting, operations for the Big Three’s EV plans will slow to a halt. Meanwhile, Tesla could continue to keep its foot on the gas and inch further and further ahead in the battle they’re already winning.
But since the strike began Friday, support has been minimal. In fact, TSLA shares have fallen nearly 3.5% in the past two trading sessions. Still, there is reason to be excited as a Tesla investor.
The company is in talks with the Saudi Arabian government right now to build a new manufacturing plant. The country is eager to lower its dependency on oil and secure metals needed to build EVs.
While the discussion is in the preliminary stages, Tesla is already thinking ahead to plan B. Elon Musk is meeting with the Turkish president in New York to discuss building an EV factory in Turkey as well.
There is no doubt that things have turned around since TSLA hit a low point of $108 per share in January of this year. Musk was too busy tweeting to steer the ship, but it appears his focus is rejuvenated – and the stock sits at $268 today after rallying more than 25% in the past month.
That being said, even though the company took a step back in the past few trading sessions, could it be poised for another run? Should you buy TSLA?
We’ll let you in on 3 things you need to know as a current or prospective investor which we’ve uncovered through the VectorVest stock analyzer.
TSLA’s Has Very Good Safety, But Upside Potential and Timing Are Just Fair
The VectorVest system simplifies your trading strategy by giving you clear, actionable insights in just 3 simple ratings. This saves you time and stress while helping you win more trades.
These are relative value, (RV), relative safety (RS), and relative timing (RT). Interpreting these ratings is quick and easy as each sits on its own scale of 0.00-2.00, with 1.00 being the average.
But it gets even easier because the system issues a clear buy, sell, or hold recommendation based on the overall VST rating for any given stock at any given time. As for TSLA, here’s the current situation.
- Fair Upside Potential: The RV rating compares a stock’s long-term price appreciation potential (forecasted three years out) to AAA corporate bond rates and risk. As for TSLA, the RV rating of 1.08 is fair.
- Very Good Safety: The RS rating is an indicator of risk. It’s derived from an analysis of the company’s financial consistency & predictability, debt-to-equity ratio, and business longevity. This is the strongest aspect of the stock right now as TSLA has a very good RS rating of 1.25.
- Fair Timing: Despite rallying over the past month, TSLA took a step back over the past few trading sessions - dissipating the strong positive price trend that had formed. Now, the stock has just fair timing with an RT rating of 1.07. This is based on the direction, dynamics, and magnitude of the stock’s price movement day over day, week over week, quarter over quarter, and year over year.
The overall VST rating of 1.14 is good for TSLA - but is it enough to justify buying this stock today? Don’t play the guessing game or let emotion influence your decision-making. A clear buy, sell, or hold recommendation is just a click away - get a stock analysis free at VectorVest today!
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VectorVest advocates buying safe, undervalued stocks, rising in price. Despite TSLA rallying 24% in the past month, it’s taken a step back over the past few days. The stock still has fair upside potential and timing with very good safety, though.
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