Tesla's rapidly growing popularity is causing a huge pump in the stock price I'll tell you exactly why in just a second welcome to trade daily where we break down all the best stock market news like And subscribe to keep up to date with the stock market and I really hope you enjoy this video Tesla has recently been on the list of the most searched stocks therefore you might want to consider some of the key factors that could influence the Stock's performance in the near future shares of


this electric car maker have returned minus 20 percent over the past month versus the S P 500 Composites plus 4.5 percent change the domestic industry to which Tesla belongs has lost 12.8 percent over this period now the key question is where could the stock be headed in the near term although media reports or rumors about a significant change in a company's business prospects usually cause its stock to Trend and lead to an immediate price change there are always certain fundamental factors


that ultimately Drive the Buy and Hold decision rather than focusing on anything else we had trade daily prioritize evaluating the change in a company's earnings projection this is because we believe the fair value for its stock is determined by the present value of its future stream of earnings we essentially look how cell side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business Trends and if earnings estimates go up for a company the fair value for its stock


goes up a higher fare value than the current market price drives investors interest in buying the stock leading to its price moving higher this is why Empirical research shows a strong correlation between Trends in earnings estimate revisions and near-term stock price movements for the current quarter Tesla is expected to post earnings of 1.20 per share indicating a change of plus 41.2 percent from the year ago quarter the consensus estimate remained unchanged over the last 30 days for the current fiscal year the consensus


earnings estimate of 4.05 dollars points to a change of plus 79.2 percent from the prior year over the last 30 days this estimate has remained unchanged for the next fiscal year the consensus earnings estimate of 5.29 indicates a change of plus 30.5 percent from what Tesla is expected to report a year ago over the past month the estimate has remained unchanged with an impressive externally audited track record our proprietary stock rating tool is a more conclusive indicator of a Stock's near-term price performance as it


effectively harnesses the power of earnings estimate revisions the size of the recent change in the consensus estimate along with three other factors related to earnings estimates has resulted in a rank hash three hold for Tesla while earnings growth is arguably the most Superior indicator of a company's Financial Health nothing happens as such if a business isn't able to grow its revenues after all it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues


so it's important to know a company's potential Revenue growth in the case of Tesla the consensus sales estimate of 25.54 billion dollars for the current quarter points to a year-over-year change of plus 44.2 percent the 82.9 billion dollars and 115.11 billion dollars estimates for the current and next fiscal years indicate changes of plus 54 and plus 38.9 percent respectively Tesla reported revenues of 21.45 billion dollars in the last reported quarter representing a year-over-year change of


plus 56 percent EPS of 1.05 dollars for the same period Compares with 0.62 a year ago compared to the consensus estimate of 22.32 billion dollars the reported revenues represent a surprise of minus 3.89 the EPS surprise was plus 10.53 percent the company B consensus EPS estimates in each of the trail in four quarters the company top consensus Revenue estimates two times over this period no investment decision can be efficient without considering stocks valuation whether a Stock's current price rightly


reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance comparing the current value of a company's valuation multiples such as price to earnings price of sales and price to cash flow to its own historical values helps ascertain whether its stock is fairly valued overvalued or undervalued whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is


as part of the trade Daily Style score system the trade daily value style score which evaluates both traditional and unconventional valuation metrics organizes stocks into five groups ranging from it to f as better than BB is better than C and so on making it helpful in identifying whether a stock is overvalued rightly valued or temporarily undervalued Tesla is graded D on this front indicating that it is trading at a premium to its peers Tesla stock is still on the rise in early trade despite a broader market sell-off


and general weakness in the stock lately here's what's moving Tesla today according to reports from Reuters Tesla is in the process of updating its model 3 sedan which first came out back in 2017. code man project Highland Tesla is aiming to cut production costs for the model 3 and increase the appeal of the sedan by revamping the car's exterior powertrain and interior components such as its massive center console display Tesla would reduce costs by reducing complexity overall though the model 3


has been periodically updated with Under the Skin enhancements to Mechanical components and Battery materials this would be the first major revamp of the car does go through premium Tesla models Like the Model S and model y have been revamped with exterior styling new touchscreen tablets and yolk steering wheels providers the redesigned model 3 would go into production in Q3 2023 first at Tesla's Giga Shanghai Factory then eventually at its main us plan and Fremont also the Tesla semiconduct's


crucial test with all eyes on Tesla's biggest EV the Tesla semi this week at its first delivery event at Giga Nevada CEO Elon must confirm the truck hit a big milestone in a tweet Tesla musks said the semi-completed a 500 Mile Drive the full payload of A1 thousand pounds the Tesla semi is an all-electric Class 8 commercial tractor trailer and the federally allowed limit for class A trucks is 80 000 total pounds of gross vehicle weight based on must tweet it is assumed that the Tesla semi completed


this 500 Mile Drive on one full charge but this could not be confirmed it is also not clear how much of the 81 000 pounds consisted of the semi itself and its battery weight nonetheless it is a milestone for the Tesla semi which also debuted in 2017 and was supposed to go into production in 2019 but has subsequently suffered numerous delays Tesla will unveil the production version of the semi at a delivery event this Thursday from Giga Nevada Tesla's first customer confirmed with yakub finance that its Executives will


be at the event media and the general public are not allowed at the event but it will be streamed on Tesla's YouTube channel this comes alongside news Tesla full self-driving goes wide and tweet late last week must confirm that Tesla's full self-driving FSD beta software has been made available to anyone in North America the option for the FSD beta system is only available for those that purchase the option currently costing fifteen thousand dollars FSD is an enhanced version of Tesla's autopilot driver


assistance system which brings features like automated steering on non-highway Roads Traffic Light and signage recognition parking assistance and vehicle summoning from tight spaces the rollout of FSD beta comes at a time of increased scrutiny from the federal government along with the National Highway Traffic Safety administration's investigation into multiple crashes of Tesla cars involving autopilot systems when coming upon accident scenes with First Responders the Department of Justice is reportedly


conducting a criminal probe into whether Tesla knowingly made false claims over its automated driver systems like autopilot and FSD this news itself doesn't really damage the stock price some analysts predict a one thousand percent growth for the stock regardless of government scrutiny I explain exactly why in this video here and with that we've come to the end of the video I'd like to give a huge shout out to anyone who's made it this far I hope you enjoyed the video I'd also like


to make it clear that this is a news and entertainment video not investment advice you should always do your own research and speak to a financial advisor before making any Investments thank you all so much for your support don't forget to like And subscribe for the chance to win up to twenty thousand dollars in Amazon gift cards and we'll see you in the next video foreign if you want more crazy trade news how about this video we did