Financial Analysis for International Markets- myassignmenthelp

Question: Discuss about theFinancial Analysis for International Markets and Sectors. Answer: In the year 2013, Tesla attained a major market capitalization and hence in the midst of 2013, it took a major leap. However, there was not an existence of a stable price and hence there was a difference in the confidence of the investors. The sentiments use to increase and decrease with every news and product announcement. The same followed the Dow Jones Industrial Average where the graph increased in the midst of 2013. However, it needs to be noted that there were declines in the process and at one point in time, the company was overvalued. The company posted a loss in 2013 because the stock was predictable in nature and contained a long business cycle. It was showing the traits of a Silicon Valley tech company (Debord, 2017). In the year 2015, there was an addition to the Model X SUV. The addition enhanced sales and provided Tesla a major boost in terms of capturing the market. This news affected the price of the stock in a positive manner, however, the, however, the model X did not appear in the same year. Hence, this led to a slight drop in the prices (Vollmer, 20114). Higher high and higher low was observed in the Dow Jones Industrial Average and the same was seen in the case of Tesla. The production issues led to the downfall. Cost of goods sold was less and operating expenses were higher in nature leading to the net loss (Bodie et. al, 2014). In the year 2016, it revealed the new Model 3 that enhanced the share price and in this scenario, Tesla was quick to have bookings. The loss declined as compared to 2015 as the cost of goods sold were higher in nature. Further, there was an improvement in the supercars (Debord, 2017). A huge Gigafactory was established in Nevada and the acquisition of SolarCity happened to lead to a stock price rally. If we compare this to the Dow Jones Industrial Average, it can be seen that the rally of Tesla followed the Dow Jones in the pattern of higher highs and higher low (Brigham et. al, 2012). However, the stock price does not guarantee the increment in profit. In 2017, the loss widened owing to the huge increment in the expenses and higher taxation. Further, it can be seen that the year 2017 had highs and lows owing to various announcements but the rally continued owing to the different news of the company (Debord, 2017). It can be commented that the company was following the Dow Jones Industrial average. It made higher highs and higher lows as per the Industrial Average. However, it can be said that Tesla is a highly volatile stock that baffled investors on numerous occasion. However, the rally continued. Going on the financial results it can be said that the trend in t he profit activity was not of top-notch thereby whenever the financial results were declared there was a drop in the share prices. References Bodie, Z., Kane, A. and Marcus, A. J. (2014) Investments. McGraw Hill Brigham, E. Daves, P. (2012) Intermediate Financial Management. USA: Cengage Learning. Debord, M. (2017) Tesla has sent investors on an epic roller coaster ride for years - look back at the craziest moments [online]. Available from: https://www.businessinsider.in/Tesla-has-sent-investors-on-an-epic-roller-coaster-ride-for-years-look-back-at-the-craziest-moments/So-lets-summarize-/slideshow/57226401.cms [Accessed 19 April 2018] Vollmer, M. (2014)A Beta-return Efficient Portfolio Optimisation Following the CAPM: An Analysis of International Markets and Sectors. Springer.