Expected
yield per annum
28-31%
  • Minimal Investment amount 7100 USD
  • Expiration date: 23.01.2019
  • Capital Protection: 50%

Tesla is a manufacturer of electric vehicles. The market capitalization is $54.2 billion, the number of employees is 33 thousand people.*

Underlying Assets Tesla
Currency USD
Expected yield, % per annum 28-31%
Volume of investments 7100 USD
Term of placement of the deposit up to 23.01.2019
Protection of capital 50%
Participation Rate 2.3
Direction of Underlying Asset Price Movement on a price increase

Growth factors:

  • Tesla is the world leader in the production of cars operating on clean energy. The main competitors are the world's largest automakers, but for companies such as General Motors, Ford or BMW, electric cars are a byproduct, which is why the innovations present in Tesla's electric vehicles outperform the competitors for the whole technological generation.
  • Clean energy as a means of earning. In addition to the production of electric vehicles, the major business segment of the company is the creation of solutions for the conservation of electricity.
  • If you invest, invest into the future! The head of the company is the well-known billionaire Ilon Mask, a man-dreamer whose charisma is comparable even to the reference figure of the high-tech business world, Steve Jobs. Until Ilon Mask manages this project, Tesla will have investors, as his very name suffices, to believe in the dream of technological utopia.
  • The long-awaited growth in sales. Throughout 2017, the sales of Model S, Model X and Model 3 cars grew on average by 10% for each subsequent quarter, something that had not been observed since early 2015. This factor cannot but reassure investors, as financial reports of the company for the past year will come out soon, and it is likely that Tesla will show positive indicators for operating and net annual profits, for the first time in its history.

 

Analysis:

At the moment, the stock price is trading slightly above the strong support level of $310 per share. Once this level is tested, we expect a rebound towards the nearest target level of $ 411 per share, the expected growth should be about 32.5%.

 

 

This product allows you to participate in the growth of the underlying asset wherein the investor risks with a limited amount, which is determinated by the Capital protection level.

The product is dedicated specifically for conservative investors, where they can  define and limit the risks of such products themselves. As such, these products provide a great opportunity to receive relativelly high income whilst minimising the possibility of capital loss.

*according to the information from the company's website.

  • Product with capital protection
  • Minimal Investment amount 7100 USD

How the product works

Once the contract is concluded, the initial price of the underlying asset, the Capital protection level, and the participation rate are recorded.

Investor risks are limited to the amount determinated by the Capital protection level.
A product with 100% protection level carries the lowest possible risk and the lowest potential yield.

The repayment to the client is calculated according to the following formula:
Repayment = Investment amount * Capital protection level + Participation rate * Price change- Commission.
Where the investment amount is taken as 100%, and the price change is calculated as follows (Current Price – Initial Price) / Initial Price * 100%.

The commission for a investment product creation is 2% of the initial investment and is charged at the time of product expiration.

If at the Expiration date the price of the underlying asset is higher than the initial price, the investor is paid 100% of the invested funds and an income equal to the product of the participation rate and the growth of the underlying asset. Conversely, the investor is paid the invested funds in accordance with the Capital protection level.

The parameters of the products are indicative and may vary depending on the market situation.

 

Examples:

1. The price of the underlying security moves in the direction chosen by the investor.

In this case, the investor receives the invested amount calculated by the formula: 100% (initial investment) * 50% (Capital protection level) + 2.3 (participation rate) * 60% (price change) = 188%

2. The underlying security’s price moves in the opposite direction and finished below the Capital protection level.

In this case, the investor receives the invested amount calculated by the formula: 100% (initial investment) * 50% (Capital protection level) = 50%

Attention!

The product yields shown in the examples and past financial performance do not guarantee future profits. All investment products are denominated in USD. The commission for an investment product creation is 2% of the initial investment and is charged at the time of product expiration. The expected yield of investment products is given in annualized percentage form.

Note:

The protective investment component is allocated to fixed income products (Eurobonds and deposit schemes at leading banks). NordFX cannot be held responsible for any potential risks associated with the default of Eurobond issuers or the bankruptcy or default of any of the banks in which the deposits are held.

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