Tesla Stock Prediction: What can we expect from Tesla and CEO Elon Musk in Q3?

Samantha Fischler is a Junior Financial Analyst at I Know First.

Tesla Stock Prediction: What can we expect from Tesla and CEO Elon Musk in Q3?

Summary

  • The latest Tesla buzz
  • Tesla Q3 2016 projections from professionals in the finance world
  • I Know First maintains a bullish stance on TSLA

The Tesla Takeover

Wondering what’s new in the world of Tesla (TSLA)? You’ve come to the right place! On June 21st, Tesla announced that they were in talks to acquire with SolarCity, another company that Tesla CEO Elon Musk has a large stake in. Between the boards of the 2 companies, there is a significant amount of overlap. Musk alone is the executive chairman and largest shareholder in both companies, and while he is CEO of Tesla, his cousin, Lyndon Rive, is the CEO of SolarCity. According to Tesla, the goal in this acquisition is to become “the world’s only vertically integrated energy company offering end-to-end clean energy products to our customers.” However, following the announcement, the stock price of Tesla fell dramatically, but has been rallying since. On August 1st, Tesla announced that the acquisition would go through for $2.6 billion.

Tesla Stock Prediction

On August 3rd, Tesla released its financial statements for the second quarter of 2016. Earnings did not live up to the expectations of Wall Street analysts who projected a loss of $0.52 per share, but TSLA’s EPS ultimately dropped by $1.06. Non-GAAP revenue also fell short of expectations coming in at $1.56 billion as opposed to the anticipated $1.6 billion.

Analysts Projections for Tesla’s Q3

We asked wealth managers, financial advisors, analysts, investment strategists and fund managers what they see as Tesla’s prospects for Q3 of 2016 and for their projections for Tesla’s stock.


Tesla Stock PredictionMichael Cirelli, Financial Advisor at SAI Financial in Warrenville, IL (Greater Chicago area), former equities trader. Retirement planning specialist, with an emphasis on technology utilization to create great efficiency for clients and client accounts.

Website: http://www.saifinancial.com/

Tesla seems to have been counted out by investors for the past few months now, but I don’t look at that as a sign of what’s to come, instead I see it as an opportunity for Elon to outperform future street expectations. Some forget that Musk is one of the great innovators of our time and his overly ambitious outlook for his company isn’t something we should count against him. The negativity surrounding the Solar City acquisition is, in my opinion, greatly over-exaggerated. I see excellent synergy potential for the two companies especially relating to the client base that each company attracts. While the deal may contribute to greater debt obligations for Tesla, I believe long term the acquisition will pay off in dividends. It seems logical that customers interested in solar power, also be interested in an electric (environmentally friendly) vehicle as well. The Tesla Model 3 will bring in a whole new class of car buyers, enabling many millennials to now afford a Tesla vehicle. This is perfect marketing given that millennials love having the most up to date, technologically advanced toys, but may not have had the funds to purchase a Model S. For a share price, I see Tesla certainly in reach of $250 come Q3. If Model 3 numbers come back favorable there’s potential for even higher prices than that. I’m always fascinated by the amount of people willing to count out a man who has successfully launched multiple spacecrafts into orbit, created one of the most well-known online payment systems in the world, and built one of, if not, the most recognized electric car on the market today.


Richard Gordon is a New York City based retail investor focused on technology, cryptocurrency and alternative energy investments. 

Seeking Alpha Profile: http://seekingalpha.com/author/richard-gordon/articles#view=regular_articles

“What it all boils down to is that Tesla is beginning to deliver on its promises. With short interest dropping, we may be around the corner from a run-up to new highs, as has been predicted recently here on SA and elsewhere on the web…

As operational efficiencies continue to improve, product offerings are expanded with new vehicles and the acquisition of SolarCity, gross margin improves and demand remains strong enough to support the dialogue pre-Model 3, Tesla is transitioning into profitability and maturity as a company…

I maintain my Hold rating on Tesla, but I would also consider entering a position soon if you are planning to pre-Model 3. With profitability basically being guaranteed by Musk after the Model 3 is released (he said they would be profitable in the second half of this year if they were not tooling up for the unreleased product), if you wait it may be to late.”


Tesla Stock Prediction

Gary Schwendiman cofounded one of the first private equity firms to invest in clean energy. He was a professor at the General Motors Institute and Dean of the College of Business Administration at the University of Nebraska for 17 years. He has given presentations on clean energy in 26 states and 10 foreign countries.

Website: http://www.futureofcleanenergy.com/

“Tesla’s proposed acquisition of Solar City <https://www.teslamotors.com/blog/tesla-makes-offer-to-acquire-solarcity> will intrigue anyone interested in clean energy. Tesla CEO Elon Musk, the majority shareholder in both companies, thinks it’s a “no brainer.” He projects an ideal scenario whereby the merged companies sell consumers a home solar system, battery charger, and electric car, so that home and transportation needs are supplied via practically inexhaustible solar energy.

It’s an enticing picture, but a closer look reveals troubling problems in the picture itself and in likely stock-market outcomes.

Problems with solar energy:

Solar energy is unreliable; the sun only shines enough for panels to generate electricity 25% of the time.

Technology for storing the energy acquired remains inadequate.

Technology for converting solar energy to usable electric current relies on construction and design that cannot be considered “clean,” and that are still unreliable.

Problems with electric cars:

Batteries rely on construction and design that cannot be considered “clean.”

Batteries remain prohibitively expensive for most consumers

Charging a battery can take up to 8 hours, and a full charge takes the car 150 miles, which makes significant travel impractical in this kind of setup.

 

Turning to the Stock Market:

Despite the buzz, both Tesla and Solar City are currently losing money—not generally a good advertisement for investors. Since they intersect, rather than overlapping, the merger is not going to lead to direct savings for either company.

Tesla is behind on deliverables once again; the consistency with which this occurs is a red flag to investors.

Although the recent fatality in a Tesla on Autopilot may not damn the technology, it is bad press for Tesla, and this will impact stock prices.”


Tesla Stock PredictionJeff Siegel is the managing editor of Wealth Daily and an expert in alternative energy and legal cannabis markets. He also works as a consultant and has been featured on Fox, CNBC, and Bloomberg.

 

Website: http://www.wealthdaily.com/

“From a basic technical perspective, Tesla’s valuation has never made a bit of sense.  Shorting the stock, on more than one occasion, has been a completely logical move – if it were any other company. But here’s the bottom line on Tesla …

No one actually invests in Tesla based on its book value.  They invest in Tesla based on its intrinsic value.

In Q2, Tesla reported a net loss of $1.06 per share on $1.56B in revenue.  Analysts were expecting a net loss of $0.55 on revenue of $1.62B.

For any other company, this would’ve been enough to knock it down a few points.  But Tesla was basically flat after the earnings release.  Here’s why: No one wants to bet against Elon Musk anymore.  And let’s face it, if Musk’s masterplan comes together the way he wants, Tesla could be one of the most powerful companies on the face of the earth.

I realize this may seem a bit hyperbolic, but so were Henry Ford’s plans back in 1908.

Right now, Tesla has a lot of irons in the fire with the Model 3, the Gigafactory, and the SolarCity deal. All of this requires some serious heavy lifting that’s not going to be figured into the book value. But it will be figured into the intrinsic value, which is really what most investors are banking on.

In Q3, Tesla will report slightly higher revenues of about $1.57B, and net losses should shrink to about $1.00.  Analysts will quibble over the book value of the company and accuse Musk of trying to pull a fast one.  But in the meantime, people will continue to buy the cars in record numbers.  And that, quite frankly, is what it all boils down to.”


Tesla Stock PredictionI Know First is a financial technology company that provides daily investment forecasts based on an advanced, self-learning algorithm.The underlying technology of the algorithm is based on artificial intelligence, machine learning, and incorporates elements of artificial neural networks and genetic algorithms.

Website: https://iknowfirst.com/

The I Know First algorithm continues its bullish stance on TSLA for the 1-month, 3-months, and 1-year time horizons.

Tesla Stock Prediction

I Know First’s algorithm forecasts how stocks are going to perform for 3 days, 1 month, 3 months, and a year. In the case of Tesla (TSLA), the middle row represents the signal strength and the bottom number represents the predictability indicator, the historical correlation which is heavily weighted on the algorithm’s recent predictions. To learn more about how I Know First’s algorithm operates, click here.

On June 23rd, I Know First published an article written by an IKF analyst highlighting Tesla. The article discusses Tesla’s projects and prospects going forward, in addition to the I Know First algorithm’s stance on TSLA for the 1-month, 3-months, and 1-year time frames. Since the article was published, TSLA’s stock price has increased by 17%.

Additionally, on February 18, 2016, the I Know First algorithm predicted TSLA to grow in the 3-month period. TSLA indeed showed strong growth of 25.19% during that time frame.

Tesla Stock Prediction

 


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