Barchart.com's Chart of the Day - Tesla According to Peter Lynch
Related Stocks
 TSLA - Tesla Inc
SymLastChgPct
TSLA294.14+33.19+12.72%

Today's Barchart Chart of the Day will be the auto maker Tesla (TSLA). Today's coverage will be a little different because I did not use Barchart technical indicators to sort for this stock. I'm making a personal observation.

Years ago I read some articles and books authored by Peter Lynch when he was running the Magellan Fund. He shared how he went beyond the numbers before he made a buy. He found out where the product was sold. Observed the traffic in and out of the sales locations not only on the number of people going in and out but counted how many people carried out bags of purchases. He interviewed sales clerks and asked if the customers were asking about the product. He asked if the customers were returning the product and why. He asked about the manufacturer's return policies, and how that was working.

This morning when I was at the Porsche dealership having my car serviced I noticed a big lack of inventory. I asked why and was told they were having trouble keeping up with demand. Most of the cars were pre-ordered and backlogged. New cars were picked up by the customers as soon as they were delivered. Even the used car inventory was low.

That reminded me of what I observed last year at the Tesla dealership down the street from Porsche. Every car was pre-sold. There was no inventory on the lot not even a Demo to test drive.

Today when I passed the lot have things changed here in Charlotte. There were several hundred cars in the lot. Every parking space was filled and many were double parked.

In press releases I've read, Musk talked about production problems and how production was having a hard time keeping up with demand. The dealership's lot tells a quite different story. Why is there so much inventory on the lot if they are selling like hotcakes?

According to the Peter Lynch Analysis something doesn't add up. Let's look at the charts and numbers:

TSLA

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart technical indicators:

  • Technical Hold - just got there from a previous sell signal
  • Negative 16.00 Weighted Alpha
  • 22.20% price loss in the last year
  • Trend Spotter sell signal on 9/4 and down 2.93% since that date
  • Below its 20, 50, 100 and 200 day moving averges
  • Down 2.03% in the last month
  • Relative Strength Index 48.22%
  • Technical support level at 288.36
  • Recently traded at 298.73 which is below its 50 day moving average of 314.70

Fundamental factors:

  • Market Cap $50.30 billion
  • Earnings per share negative 15.84
  • Analysts' consensus all over the place
  • Revenue consensus is 73.10% growth this year and another 38.50% next year
  • Earnings/loss reduction - 36.00% this year, an additional 152.80% next year and 35.00 annually for the next 5 years
  • Wall Street analysts presently have 4 strong buy, 4 buy, 4 hold 6 under perform and 1 sell call in place

Caveat emptor --- Let the buyer beware!