hesamjafarian

Tesla Clarification

Long
NASDAQ:TSLA   Tesla
Been checking the news horrifying the investors of Tesla as it is getting closer to the S&P indexing. Of-course the imposing bearish feeling would be mostly be profitable for indexes since they buy the stock lower.
However, one thing to notice from the fundamentals of Tesla is indicating a revenue growth from 8B to 26B from 2016 to 2019. The earning from loss is reduced drastically until 2019 and until 2020 with the quarterly revenue increase by 3Q being equal 2019 with 26B dollar approx. and with remaining report for 4th quarter. The earnings in 2020 has increased and become positive especially for 3Q up to 1B dollar. Hence, as earnings and revenue is growing I don't understand why a chunk in media is evaluating the price of this as 1/10. With higher demand of EV and autonomous cars by 2025 and in addition of factories opening in Texas and China, lowering the production costs higher number of fossil fuel will be replaced by EVs and it is a good market for Tesla.
In future, a consecutive bullish profitability will certify this demand and will be the main reason confirming the annexation in S&P.

Wish you all luck and bull,
HJ

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