Is Tesla Stock a Good Investment?

Is Tesla Stock a Good Investment?

Tesla Motors received an average rating of "Buy" in 2015, based on the recommendations of 21 Wall Street firms, reports Nasdaq. Firms including JPMorgan Chase, Barclay’s and Dougherty & Company were among the companies that made the recommendations.

Analysts use several indicators to determine if stocks such as Tesla Motors are good short- or long-term investments, explains Investopedia. Analysts who follow individual stocks study such variables as the company’s price-to-earnings ratio, earnings-per-share and price-relative-to-earnings-growth. When analysts use such variables, they are performing a fundamental analysis of each company. Instead of using technical indicators such as charts and graphs, the analysts determine the overall health of companies based on their fundamentals and decide whether or not to place a "Buy" or "Sell" rating on stocks using those fundamentals.