TSLA | Tesla Motors | Equity Analysis

NASDAQ: TSLA (Tesla Motors Inc) | Evolution 4.0 Individual Equity Analysis

One of the equities that we have been following closely and are still in amazement in some ways of: TSLA (Tesla Motors Inc). Despite the abysmal reception of the Model X "SUV", the future by all accounts is still looking fairly bright for the "sort of a tech company, sort of a car company" silicon valley operation. Though with the sometimes unpredictable behavior of such "new corporate order" corporations, TSLA is still finding its footing and brand identity. As such, the opportunity for swing traders to capitalize mid term on short term news is certainly there.

Based upon Evolution 4.0's analysis of TSLA common equities, we are putting a "buy" zone in at the below 191.31 level. While the 181.00 to 193.31 level might seem somewhat broad based, realistically speaking, the 185 is where we are seeing specifically the best buy in point. Evolution 4.0 forecasts those levels based upon the negative reception surrounding the Model X cross over SUV and the news from Consumer Reports that was responsible for the most recent sharp beat down. In the day and age of temporary / short lived news stories, the withdrawal of recommendation for the Tesla Model S at worst will likely represent a speed bump. Keep in mind that TSLA does have a tremendous amount of brand equity already and with Elon Musk at the helm, based upon Evolution 4.0, the future is looking quite promising for Tesla Motors.

For the sake of "actionable trading" we have put a sell zone (initial sell zone) in at the 204.25 to 208.83 level. Based upon the analysis of Evolution 4.0 as well as the research of our data experts, we would recommend "scaling out" at those levels. In other words, take some profits at the 204.35 to 208.83 levels but leave a portion in to capitalize on upside momentum.

The second target zone Evolution 4.0 forecasts to be at the 213.17 level. Likely a time-based recovery and/or upside momentum from the announcement of a new product(s). We have also factored in the "rising tide" effect from overall upside index momentum.

Some additional information that Evolution 4.0 has discovered: TSLA as a brand has tremendous potential outside the automotive space as well. What TSLA represents (based upon Evolution 4.0 research) is an adapted business model. While much has been said about this concept by various analysts and industry experts, what Evolution 4.0 forecasts is as such in terms of concepts:

The first of companies that will be much more broad based in product offerings based around central "break through" technologies. (R&D Based)

The first of companies that will be known for broader based technological concepts / quality of manufacturing across a much wider variety of marketspaces.

Ironically the two central concepts discovered by Evolution harken back to the days of the Industrial Revolution in the united states with companies producing a myriad of goods (across market spaces) such as Singer, Westinghouse, and Maytag. Based upon Evolution 4.0 information, house hold appliance, mobile device hand sets (battery life-span focused) and aftermarket technology products using Tesla battery / charging technology are very, very plausible in the short to mid term. Think the same branding approach that Dyson has used to separate its products from otherwise very the very competitive home-goods marketspace they now dominate the high end segment in. Another example would be Bose audio.

Long term, what makes Tesla an appealing organization even in its current state is what we colloquially refer to as "the big one". The potential for TSLA, with the vision of Elon Musk and company, to create something far more significant than appealing electric vehicles and home-consumer goods. Based upon Evolution 4.0 information, the potential for Tesla to create the technology required to make electric vehicles a truly practical and appealing option is tremendous. (For example, "smart roads" that use wireless or contact point charging for electric vehicles in motion). In other words, rather than creating a product, in staying true to the namesake of the company, instead, creating an entire new industry.

Additional analysis would reveal that what we are seeing is something of a business shift back to again, what would be considered a 1900's industrial revolution business model. That is to say that according to Evolution 4.0 we will likely be seeing companies building broader ranges of products around technology with greater longevity as opposed to product specific technologies with shorter lifespans.

We would encourage those interested in additional Evolution 4.0 research on TSLA, as well as a myriad of other finance, science, and social topics to subscribe to WireHaus, our monthly publication. We will be conducting additional research on macro-level business shifts into something we have come to call the "new world economy".