Tesla Motors Inc (NASDAQ:TSLA) shares tend to be volatile and as far as price-targets go, there is a chasm between the bulls and the bears on the Wall Street. Some believe the stock to plunge below $100 while others argue that the stock could touch $500.
Tesla stock chart – what it says?
Amid all this tussle, Tesla has amassed $30bn market cap, and has certainly rewarded early investors, who purchased it after the 2010 IPO, when the stock traded for just $20. The shares are trading around $200 now. It is good to take a look at Tesla’s stock charts from time to time. And, now is a good moment to do that as the year 2016 is coming to an end, says Business Insider.
If we look at Tesla’s stock chart over the past five years, we see the shares actually took off in 2013, and peaked in fall of 2014. Then there was a slide, followed by a quick recovery. However, a big decline came in 2015 before another recovery. The return has been 525% over the full five-year period, notes BI.
As for the past year, the chart shows that there has been a grinding fall since the automaker began to push back towards its all-time highs. The plunge has, however, not happened as it did in early 2016. More importantly, the stage is not really set for a big drop-off, says BI.
Not much upside expected
Tesla Motors Inc (NASDAQ:TSLA) posted a profit in the Q3 owing to the ZEV credits. The automaker appears on track to hit the low-end of its 2016 guidance for the deliveries. The Q4 may not be profitable, but Tesla’s cash burn appears to be slowing down as it increases production.
This all sound pretty good, unless you anticipate the EV firm to surge back from a slide, as it did last year. This time, it might not happen as the automaker does not have a new product launch until late 2017. The Model 3 is expected next year with significant deliveries not arriving until 2018.
“That means Tesla could be finding a level, with trading clustered around $200,” says BI. In addition, volatility could also ease making the Tesla trade on both the long and short side less exciting. “But this could all vindicate what some analysts have argued is a sort of speed limit on Tesla’s near-term growth,” notes BI. The future is already priced into the stock, so purchasing it now does not present much upside, at least not right away.
A strange thing about Tesla Motors Inc (NASDAQ:TSLA) is, in its complete history as a public company, it has experienced only two clearly “mellow” periods. One right after the IPO when it went nowhere, and second maybe now, into early-to-mid 2017. As per BI, this phase could suggest that the Tesla is becoming more of a “normal” car company.