A stock is a security that entitles its owner to receive a portion of the company's profits, which is called a dividend. However, if you look at the size of the dividends of many tech giants, it becomes clear that no one invests in the shares of such companies for the sake of receiving dividends. Shares of such companies perform primarily the function of saving money and the function of long-term investment. In the first case, there is a high probability that the shares will not fall in price into the abyss, in the second - that they will become more expensive in the long run. Thus, the investor's income will be expressed only in the difference between the value at the sale and the value at purchase, and then only if the owner wants to part with the securities. We have already said that in the case of companies such as Tesla, Apple, or Microsoft, the dividends are less than 1% per year, which does not even cover inflation. But at the same time, there are still a huge number of different financial indicators that form the attractiveness of the shares of a particular company. And Tesla is far behind such companies as Volkswagen or Toyota in all these indicators. Just think about it, Tesla is the most expensive car company in the world, which is 2.5 times more expensive than the second-largest company Toyota, and at the same time, Tesla ranks 14th among all automakers in terms of revenue. Toyota earned $ 250 billion in 2020, while Tesla earned $ 31.5 billion. At the same time, Tesla is worth $ 605 billion, and Toyota – 240. That is, Toyota in 2020 sold cars worth more than the entire company is worth. Even Kia and Nissan are higher than Tesla in terms of revenue. Of course, you can also pay attention to the fact that Tesla produces exclusively electric cars, as well as the fact that electric cars are a relatively new technology. That is, the whole world is only just forming an interest in them. In 10-20-30 years, Tesla can earn much more by selling electric cars. However, its cost may also continue to rise. Experts say that the current size of the company's capitalization and the price of its shares should be correlated with the size of revenue. Simply put, a company can't be worth a trillion dollars and still attract a bunch of investors every year if its profit is minimal. According to experts, Tesla should increase sales of electric cars by 30 or 40 times to compensate for its cost. Revenue should grow steadily for 10-15 years just to reach the level of compliance with the current share price and capitalization. But at the same time, Tesla will not just have to increase production. First, the demand for electric cars of this company should constantly grow, and they are far from the cheapest. Second, the company will have to win back market share from other auto giants. Thirdly, to meet the current level of capitalization, Tesla needs to sell more cars than Volkswagen and Toyota combined. However, it should also be understood that other companies will seek to win back part of the "electric car" pie from Tesla. Almost all automakers are already producing electric cars with might and main. Thus, we can draw a fairly obvious conclusion from all of the above: Tesla shares are overbought. Investors buy them because the shares are rising in price, but the company itself will now have to show improved financial results from year to year to retain investors.
In technical terms, Tesla shares continue to fall. Moreover, they did not manage to enter the Ichimoku cloud, but the price fell below the critical Kijun-sen line. Therefore, now there is more probability of a further drop in quotes than a sudden increase. The nearest target is $ 575 per 1 share.