This is an exact copy of the chart I published over a month ago and what I have added is a green parallel channel that is showing you the rough area where the stock will be trading at 8 times sales at the low end and 10 times sales at the high end. Over time the stock will rise or fall around this channel and the last correction into the 180 level in March pushed the reading down to 7.3 times sales, it's lowest level of valuation in over two years.
I don't know what is magical about 10x Sales as a valuation metric because it is an extremely high valuation number, but the future potential is so great for a company with the highest rated automobile in modern times. The valuation of Tesla now is 9.73 times its revenues with the stock at 247.42 on Friday, May 15, 2015.
Look for updated auto sales numbers at the beginning of July as the next major news for TSLA shares. Until then the stock is drifting higher on hopes for the home and business battery solution.
Tim Friday, May 15, 2015 247.42 last TSLA 12:42PM
Comments
A-shot
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Funny enough, gap was created from the previous PSR, and now is trading back near it as well
A-shot
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Nice idea - ill keep an eye out on it
thwong1212
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How many shares you own??? Will I risk myself to absorb your holding??
timwest
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What do you mean by "Will I risk myself to absorb your holding??" Are you asking if you should buy Tesla shares? That's your choice. I own shares, but I don't know what you can afford to lose. If you are an investor, you need to be able to absorb a 50% decline in the stock price so you have the ability to buy more shares when they are "on sale" at low prices. Buy, buy lower, buy lower and lower, up to a fixed % of your entire account. You can let it ride on the upside to grow to whatever percentage of your portfolio you want. I'd suggest no more than a 10% holding in any one individual security, especially <10% because TSLA isn't profitable yet. I'd suggest that no more than 10% of your entire portfolio is in stocks of companies that are unprofitable. So, I hope that answers your question in a round-about way! Thanks @thwong1212 for the questions
thwong1212
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You are very nice, I am so afraid to buy now, because people say it does not have any profit in near future, when should I start buying / What price ? If 10% invest in Tesla, then is there any other company that you have bought and recommend? Thank you for your advice.