Tesla (#TSLA) weekly uptrend opportunity based On 1 Lot Calculation:
GLOBAL EV MARKETS:
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ELECTRIC VEHICLES (EV) MAKE ONLY AROUND 9.0% OF TOTAL CAR SALES, WORTH 66.7 MILLION CARS IN 2021: The total global car market grew just 4.5% in 2021, by around 66.7 million cars. In 2020, the world sold around 63.8 million cars. The estimates say that around 6.5 million electric vehicles (EVs) were sold worldwide in 2021, up 109% from 2020. EV sales represent around 9% of all passenger car sales in 2021. The EV sector increased its market share from 4.11% in 2021 to around 9.00% off the global car sales.
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MARKET POTENTIAL: ELECTRIC VEHICLES (EV) ARE EXPECTED TO TAKE UP AROUND 50% OF GLOBAL CAR SALES BY 2030. The 2021 figures of 287.36 billion dollars are an increase of around 76% from 2020’s 160.01 billion dollars. Expecting this number to grow to 823.75 billion dollars, the EV market should be growing annually on average by 18.6%.
CHINA EV MARKETS:
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CHINA LEADS THE WAY (2021): EV MAKES AROUND 13% OF THE CAR MARKET IN CHINA, UP FROM 3.5% IN 2020: More than half of the total electric vehicles (EVs) sold worldwide last year (including plug-in hybrids) went to buyers in China. Total number of cars sold in 2021 in China was 26.28 million, and EV made around 13% of the market.
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MARKET SHARE CHINA: Tesla is the largest EV company in China, holding some 14% of the markets, followed by GM’s Wulling (~11.8%) and BYD (~10%).
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ELECTRIC VEHICLES IN CHINA ARE EXPECTED TO TAKE UP 40% OF CHINA’S CAR SALES BY 2030. Total car sales are expected to grow to 38 million in 2030, while around 15 million (or 40%) will be Electric Vehicles.
TESLA:
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EVENT (STOCK SPLIT 3:1). TESLA SHAREHOLDERS ARE EXPECTED TO VOTE ON AUGUST 4, 2022. According to MarketWatch, investors view stock splits as a sign of confidence by management, because splits happen more often in stocks that have bullish momentum behind them. Splits also increase liquidity by making shares more accessible to a wider range of investors, something Amazon acknowledged when it announced its split.
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TESLA STOCK SPLIT HISTORY (AUGUST 2020): The stock rose 13.25% the very first day of the announcement (August 11, 2020). From August 11 to August 31 (when the split took effect), the stock went up by 61.18% to test back then a fresh all time high of $2317.98 a share. After the stock split took place, onwards, over the next twelve months, the stock gained 65.91%.
*Please note that past performance does not guarantee future results
STATISTICS: Since 1980, the shares of companies that do stock splits are typically up 25% a year later, compared to 9% for the broader market, according to a recent study by Bank of America.
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PERFORMANCE AFTER STOCK SPLIT ANNOUNCEMENT, PRIOR TO ACTUAL SPLIT (SOURCES: YahooFinance, Bloomberg, Fortrade MT4):
Apple (STOCK SPLIT: 7-1 Announcement April 23, 2014): Apple’s stock price increase around 23% from the announcement of the split until the actual execution of the split on June 9, 2014.
Tesla (STOCK SPLIT: 5-1 Announcement August 11, 2020): Tesla’s price appreciated around 60% from its announcement to the actual stock split date on the 31st of August 2020.
Apple (STOCK SPLIT: 4-1 Announcement July 30, 2020): Apple’s price increased around 30% since its split announcement on 30th of July 2020, until the effective date 31st August 2020.
NVidia (STOCK SPLIT: 4-1 Announcement May 21, 2021): Nvidia witnessed a percentage price increase of around 33% between its announcement date and the effective date of the split on July 20, 2021.
*Please note that past performance does not guarantee future results
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STOCK PERFORMANCE AFTER STOCK SPLIT (SOURCES: YahooFinance, Bloomberg, Fortrade MT4):
Apple (STOCK SPLIT: 7-1 effective June 9, 2014): 3 Months: +8.69%. 6 Months: +19.26%. 12 Months: +37.00%
Tesla (STOCK SPLIT: 5-1 effective August 31, 2020): 3 Months: +28%. 6 Months: +53%. 12 Months: +65.91%
Apple (STOCK SPLIT: 4-1 effective August 31, 2020): 3 Months: -4.5%. 6 Months: +2.11%. 12 Months: +22.00%
NVidia (STOCK SPLIT: 4-1 effective July 20, 2021): 3 Months: +17.60%. 6 Months: +30%. 12 Months: -
*Please note that past performance does not guarantee future results
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PRICE ACTION: THE STOCK HAS HAD A DOWNWARD CORRECTION OF AROUND 50% FROM ITS ALL- TIME HIGH OF $1243.25 (November 4, 2021). The stock has fallen to its lowest rate since 2017 to $617.11 (May 25, 2022). Tesla was last trading around $650, and If a full recovery follows to recent all- time highs, the stock could see an upside of around 91%.
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ANALYSTS OPINIONS: Goldman Sachs forecasts $1000 a share. Wedbush analyst Dan Ives targets Target $1000. Morgan Stanley forecasts $1300. Deutsche Bank forecasts $1250. Credit Suisse’s forecast is $1125 a share. UBS forecasts Tesla Price at $1,100.
#TSLA, June 14, 2022
Current Price: 650
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Tesla |
Weekly |
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Trend direction |
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900 |
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820 |
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750 |
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570 |
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540 |
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|
500 |
Example of calculation based on weekly trend direction for 1 Lot1
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Tesla |
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Pivot Points |
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Profit or loss in $ |
250,000.00 |
170,000.00 |
100,000.00 |
-80,000.00 |
-110,000.00 |
-150,000.00 |
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Profit or loss in €2 |
238,907.52 |
162,457.12 |
95,563.01 |
-76,450.41 |
-105,119.31 |
-143,344.51 |
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Profit or loss in £2 |
205,477.20 |
139,724.50 |
82,190.88 |
-65,752.70 |
-90,409.97 |
-123,286.32 |
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Profit or loss in C$2 |
322,620.00 |
219,381.60 |
129,048.00 |
-103,238.40 |
-141,952.80 |
-193,572.00 |
1. 1.00 lot is equivalent of 1000 units
2. Calculations for exchange rate used as of 09:00 (GMT+1) 14/06/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
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You may wish to consider closing your position in profit, even if it is lower than suggested one
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Trailing stop technique can protect the profit – Ask your Client Manager for more detail