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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

TESLA

Market Opportunities - 08/08/2022

08 August, 2022

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

Tesla (#TSLA) weekly uptrend opportunity based On 1 Lot Calculation:

GLOBAL EV MARKETS:

  • 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.
  • 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 could be growing annually on average by 18.6%.

CHINA EV MARKETS:

  • 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. China led global EV growth in 2021 as sales nearly tripled (UP 277%) to 3.4 million (from 0.9 million in 2020). Total number of cars sold in 2021 in China was 26.28 million, and EV made around 13% of the market.
  • 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%)
  • 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 STOCK SPLIT:

  • EVENT (STOCK SPLIT 3:1). STOCK SPLIT IS CONFIRMED TO COME INTO EFFECT AUGUST 25. 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.
  • 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%.

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.

  • 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 increased 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

  • 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

OTHER EVENTS AND ANALYSIS:

  • Q2 EARNINGS RESULTS BEAT ESTIMATES: REVENUE (BEAT): $16.93 billion vs. $16.80 billion expected. EARNINGS PER SHARE (BEAT): $2.27 vs. $1.79 expected. CAR PRODUCTION: CEO Elon Musk said Tesla’s new factory outside of Berlin surpassed 1,000 cars per week in June, and he expects the company’s new factory in Austin, Texas to exceed the 1,000 per week production milestone in the next few months. CYBERTRUCK: In response to an investor’s question, Elon Musk said Tesla is hoping to start delivering the Cybertruck, an experimental looking pickup, in the middle of 2023.
  • 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 had fallen to its lowest rate since 2021 to $617.11 (May 25, 2022). Tesla was last trading around $880, and If a full recovery follows to recent all- time highs, the stock could see an upside of around 41%.
  • ANALYSTS OPINIONS: Goldman Sachs forecasts $1000 a share. Wedbush forecasts $1000. Morgan Stanley forecasts $1150. Deutsche Bank forecasts $1125. Credit Suisse’s forecast is $1000 a share.

#TSLA, August 8, 2022
Current Price: 880

Tesla

Weekly

Trend direction

UP

Resistance 3

1243

Resistance 2

1150

Resistance 1

980

Support 1

800

Support 2

775

Support 3

740

Example of calculation based on weekly trend direction for 1 Lot1

Tesla

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

363,000.00

270,000.00

100,000.00

-80,000.00

-105,000.00

-140,000.00

Profit or loss in €2

356,249.08

264,978.65

98,140.24

-78,512.19

-103,047.25

-137,396.34

Profit or loss in £2

300,143.87

223,247.51

82,684.26

-66,147.41

-86,818.47

-115,757.97

Profit or loss in C$2

468,397.05

348,394.50

129,035.00

-103,228.00

-135,486.75

-180,649.00

1. 1.00 lot is equivalent of 1000 units

2. Calculations for exchange rate used as of 08:50 (GMT+1) 08/08/2022

Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.

  • You may wish to consider closing your position in profit, even if it is lower than suggested one
  • Trailing stop technique can protect the profit – Ask your Client Manager for more detail
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