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  • Investing in Tesla: A Strategic Guide to Navigate the Market

    Investing in Tesla: A Strategic Guide to Navigate the Market

    Tesla, Inc. (NASDAQ: TSLA) stands as a captivating force among US stocks, showcasing commendable strides in Q3 2023. Bolstered by a surge in vehicle deliveries and strategic diversification, the company witnessed a notable uptick in revenue.

    However, beneath the surface of this financial narrative lies a nuanced reality, one which involves moderated growth catalyzed by a dip in average selling prices.

    Operational intricacies that are important to people investing in Tesla, include increased expenses for Cybertruck and AI ventures, coupled with the costs of factory upgrades, and shape a challenging quarter.

    Yet, amidst these dynamics, Tesla’s financial foundation emerged robust, fortified liquidity, and a resilient balance sheet. In this strategic guide, we delve into the intricacies of navigating Tesla stock, exploring the opportunities concealed within its challenges.

    As investors contemplate investing in Tesla amidst the financial flux, we unravel key insights to empower decision-making in the dynamic world of Tesla investments.

    Valuation

    The first thing to come to mind regarding investing in Tesla would be where it stands in terms of valuation. Tesla’s current valuation raises eyebrows when compared to traditional automakers like Ford and Toyota, trading at 5-6 times their price-to-earnings (P/E) ratios.

    While stocks can perform well at high P/E ratios, Tesla’s growth expectations demand scrutiny. The consensus predicts a 25-35% earnings per share (EPS) growth over the next two years, a target that seems ambitious, especially considering Q3 results.

    Assuming a bullish scenario of sustained 30% EPS growth until 2027 and a 30x exit multiple, akin to top tech firms like Microsoft, the expected annual return hovers around 8%, aligning with market norms.

    However, exceeding this hinges on achieving over 30% EPS growth, a daunting prospect, especially amid a potential 2024 recession.

    The bear case suggests Tesla may stagnate, as seen in Q3, leading to a re-rating and a potential drop to $100 per share. Despite some considering the risk-reward unattractive, believers in Tesla’s diversified business lines may find appeal.

    Caution prevails, urging investors to await Q4 earnings in January before making decisions. While shorting is not advised, staying on the sidelines mitigates the opportunity cost, considering the uncertain economic landscape and the potential for missed gains if a recession fails to materialize.

    Assessing Growth

    Having assessed the valuation of Tesla, lets now move on to something equally as important to those considering investing in Tesla: Growth.

    In Q3, Tesla’s revenue reached $23.4B, reflecting a 9% YoY increase, albeit missing estimates by $790M. Concerningly, growth decelerated significantly from 47% in Q2, marking the first single-digit quarterly growth in three years.

    The Automotive segment saw a modest 5% YoY increase to $19.6B, propelled by a 29% rise in Model 3/Y deliveries but offset by a 14% decline in Model S/X deliveries, linked to higher interest rates.

    Despite production and delivery slowdowns, Tesla delivered 435K vehicles, up 27% YoY. Market share improved globally, driven by a strategic price-cutting approach. However, Tesla faces challenges in China, where EV sales dipped 18% in November.

    Tesla’s Services and Other Revenue surged 32% YoY to $2.2B, with potential acceleration as Tesla partners with major automakers for Supercharger access.

    Energy Generation and Storage Revenue rose 40% YoY to $1.6B, powered by Megapack deployments, while solar deployments dropped 48% due to industry challenges.

    Despite near-term hurdles, Tesla’s growth story endures. Positioned as an industry leader in EVs and sustainable energy, Tesla’s resilience and strategic moves suggest long-term promise, especially as macroeconomic conditions potentially improve.

    Investors should consider the broader market dynamics and Tesla’s role in shaping the future of sustainable transportation and energy.

    Profitability

    Valuation and growth are definitely meaningful to those keen on investing in Tesla, but they mean nothing if the company isn’t actually profitable.

    Tesla’s profitability, a pivotal aspect for investors, has been a topic of intense discussion. In Q3, the Gross Profit stood at $4.2 billion, with an 18% Gross Margin, marking a 22% YoY decline.

    Notably, Tesla sacrificed 600 basis points of Gross Margin to achieve a mere 9% YoY growth, raising concerns.

    Segment-wise analysis reveals a contrasting picture. The Energy Generation and Storage segment outshines, boasting a 1,500 basis points YoY increase in Gross Margin to 24%.

    Conversely, the Automotive segment, responsible for the overall margin dip, saw a decline from 33% to 19% due to lower ASP.

    Despite a commendable Cost of Revenue per vehicle reduction, the faster decline in ASP leads to deteriorating Automotive Gross Margins.

    Operating Profit in Q3 was $1.8 billion, reflecting an 8% Operating Margin, impacted by lower ASP, increased expenses for projects like Cybertruck and AI, and temporary factory inefficiencies.

    While Tesla maintains a higher Operating Margin than the industry average, concerns arise as it diminishes. Net Income Margin also declined to 8%, aligning with industry standards.

    However, Tesla stands out with superior ROIC, surpassing major competitors, indicating long-term capital efficiency.

    In conclusion, Tesla’s strategic focus on market share and long-term gains, especially through Full Self Driving, suggests potential for improved margins in the future, driven by increased sales, new projects, and enhanced operational efficiency.

    Investors should carefully consider these dynamics before navigating the Tesla stock.

  • What TSLA Premarket Price Today Is Telling Us?

    What TSLA Premarket Price Today Is Telling Us?

    TSLA premarket price today displays a minor adjustment as of the last check, down by 0.81% to trade at $249.08.

    Anticipation is high as Tesla Inc (NASDAQ: TSLA) prepares to unveil its third-quarter 2023 financial results after the market’s close on Wednesday, October 18, 2023.

    On that occasion, Tesla will issue a concise advisory with a link to the Q3 2023 update, available through Tesla’s Investor Relations website.

    Tesla (TSLA) stood among premarket movers Nasdaq today after more than 1.5 million of its shares changed hand before market opens. TSLA closed the last session at $254.46 after getting a hit of 1.70% or $4.40.

    As we stand on the threshold of this earnings season, investors ponder whether these corporate results can help to steer the stocks out of their recent slump.

    Heading into the third quarter reports, market analysts foresaw earnings remaining on a plateau compared to the same period a year prior.

    As the sun heralds a fresh trading day, we find ourselves in an era of anticipation and growth. Let’s have a look at premarket movers this morning.

    TSLA premarket price today

    Advanced Micro Devices, Inc. (AMD), the ever-resilient chip giant, dances gracefully. AMD premarket price stands at $108.79, a jubilant ascent of 1.04% from its recent close.

    Zoom Video Communications, Inc. (ZM), the harbinger of connectivity, shines brilliantly. Radiating a remarkable 2.34% increase, Zoom premarket price is hovering around $150.

    General Motors Company (GM), the venerable automaker, embarks on a nuanced journey. GM premarket price of $56.78 is demonstrating a modest 0.12% dip. Apple Inc. (AAPL), the tech icon, spreads its wings.

    AAPL premarket share price is of $178.85 is exuding a positive energy which is up by 0.51%.

    Amazon.com, Inc. (AMZN), the titan of e-commerce, is also embracing the morning breeze but among the premarket gappers. AMZN premarket price is showcasing a tag of $129.79, down by a mere 0.45%.

    Indeed, the premarket scene unfolds as a symphony of optimism, where financial instruments awaken to new opportunities and aspirations, and premarket movers penny stocks are also no exception to that.

    Coming back to TSLA, we see that certain strategists hold the view that data exceeding expectations might usher in earnings that surpass previous concerns.

    Should this optimistic scenario unfold, it could serve as the next catalyst to invigorate the stock market.

    However, on October 2, Tesla shared a brief overview of its business, revealing that margins are likely to experience a decline during the third quarter, with further challenges expected in the last three months of 2023.

    This has left investors apprehensive about the need for more price adjustments to stimulate demand.

    In the third quarter, TSLA successfully manufactured over 430,000 vehicles and delivered more than 435,000 units. A sequential decline in production was attributed to planned downtimes for factory enhancements.

    Tesla’s 2023 objective, set at about 1.8 million cars, remains undisturbed. The electric vehicle maker sacrificed profit to boost sales of its aging vehicle range, especially amidst high interest rates and competition from China’s BYD.

    premarket gappers

    Investors eagerly await CEO Elon Musk’s plan to ensure the delivery of a record-breaking 476,000 cars in Q4 to reach the annual target of 1.8 million units. In October, Tesla had already reduced prices in the US for the Model 3 sedan and Model Y SUV.

    The previous month also saw price cuts for the premium S and X models, and a revamped Model 3 with extended range hit select markets. Nevertheless, the new Model 3 is yet to debut in the US, China, and Europe, with no defined timeline.

    The price competition, characterized by reductions exceeding 6% across various models during the July-September period, is likely to have diminished Tesla’s margins to a four-year low of 18.1%, excluding regulatory credits, as reported by nine analysts surveyed by Visible Alpha. This trend is expected to persist into the fourth quarter, with margins possibly falling below 15%, according to Wells Fargo analyst Colin Langan.

    Tesla deferred its Cybertruck launch event from September to the year-end, with Musk citing the technical complexity of the truck’s design as a key factor.

    Back in 2019, the company had initially projected a price point below $40,000 for the Cybertruck, but since then, electric vehicle prices have seen an increase.

    The TSLA Cybertruck is now expected to be priced around $49,900 for the single motor, approximately $59,900 for the dual motor, and likely $79,900 for the tri-motor, slightly higher than the Model Y, as anticipated by Gary Black, the managing partner of The Future Fund, which holds Tesla stock.

    Musk’s long-standing optimism regarding Tesla’s full-self driving technology and its potential to enhance Tesla’s value remains a focal point.

    Nonetheless, the company has grappled with persistently unmet targets for achieving this capability, as regulatory authorities continue to scrutinize the technology over safety concerns.

    TSLA premarket price

    In response, Tesla reduced the technology’s price by a fifth in August, and analysts suggest that further price reductions may be in the pipeline.

    Investors also await comprehensive details, including potential capital outlay, concerning the Tesla factory in Mexico’s northern state of Nuevo Leon, which Tesla announced in March.

    A senior Mexican government official recently stated that the facility’s final permits could be ready within weeks, and local authorities have commenced the infrastructure work requested by Tesla.

    FAQs

    What Is the Mean Trading Volume for Tesla Shares Before Market Open?

    The average pre-market trading volume for Tesla shares is 2.4 M over the past 30 days.

    It provides valuable insights into investor sentiment and market activity, serving as a critical indicator of early market dynamics and potential price movements.

    How Can Tesla Stocks Be Acquired at Their Most Economical Value?

    Investors seeking to acquire Tesla stocks at their most economical value should monitor market trends, leverage dollar-cost averaging, stay informed about company developments, and exercise patience to capitalize on potential buying opportunities.

    How Much Will Tesla Stock Cost In 2033?

    Predicting the precise future value of Tesla stock in 2033 remains elusive, as it hinges on multifaceted factors like market dynamics, innovation, and global economics.

    However, Expert analysis has been estimating a price target of $1,042 by the end of 2033.

    What Is Tesla’s Price-To-Earnings Ratio?

    Tesla’s Price-to-Earnings Ratio (P/E) reflects market sentiment toward the electric vehicle pioneer.

    As an innovator in sustainable technology, Tesla’s P/E ratio of 70.68 signifies investor expectations and potential for future growth in the ever-evolving automotive industry.

    What Is Tesla’s Most Budget-Friendly Vehicle?

    Tesla’s most budget-friendly vehicle is the Model 3, combining innovation with affordability, which is expected to be debut in 2024 with a price tag of $25,000 to $30,000.

    Is Tesla A Dividend Paying Company?

    Tesla, despite being renowned electric vehicle manufacturer, does not pay dividends.

    Instead, the company focuses on reinvesting its earnings into research, development, and expansion to drive innovation and sustainable growth in the electric automotive industry.

    How Much Does Tesla’s Eps Stand At?

    Tesla’s earnings per share (EPS) can fluctuate due to various factors affecting the company’s financial performance.

    TSLA’s 12-month EPS in the last quarter ended June 30, 2023 was $3.53, a 27.9% increase year-over-year.

    Where Does Tesla Sell the Most Automobiles?

    Tesla’s highest sales volumes are often concentrated in regions with strong demand for electric vehicles, including North America, particularly the United States, and Europe, where sustainability-conscious consumers embrace the brand’s innovative automotive technology.

    How Many Tesla Vehicles Were Retailed in The United States In 2022?

    In 2022, Tesla established a remarkable presence in the United States by retailing a staggering number of electric vehicles, contributing significantly to the country’s shift towards sustainable transportation. But Tesla does not provide regional breakdown of its global sales.

    Who Are Tesla’s Main Competitors?

    Tesla’s primary competitors include legacy automakers like Ford, GM, and BMW, alongside emerging electric vehicle manufacturers such as NIO and Rivian. The electric vehicle market continues to witness fierce competition and innovation.

  • Tesla Inc. Goes For Volumes Over Margins

    2022 saw Tesla Inc. (NASDAQ: TSLA) fall from its glorious highs into the humble territory. Owing to its severe shedding of market cap, the EV maker no longer ranks among the top ten companies in the world. Recently, it has been moving towards a different strategy to maintain its dominant market position.

    Tesla Slashing Prices in the US

    Tesla Inc. (TSLA) recently announced that it will be cutting down the prices of its vehicles sold in the US by 20%, putting its Model Y below $53,000. Investors have been discussing this shift across the markets, as it has two direct implications for the future of Tesla. Firstly, it qualifies that company for a $7,500 tax credit, under recent US regulations, which aim to bring electric cars into the mainstream, and within the affordability ranges of the masses. Secondly, the move also shows Tesla attempting to make a pivot towards a strategy that puts its sales volume above profit margins.

    TSLA Part of Wider EV Rally

    Throughout this week, the wider market has evidently remained largely optimistic with Tesla, as has been indicated in its price trend. On Monday, TSLA stock saw a single-day gain of 7.55%, which was part of a wider rally involving top EV players. Many in the market have commented that this bullish action comes as China begins reopening factories operating within the country. Similarly, there has also been a positive mood towards inflation, with the latest data, as investors feel the interest rate hikes have yielded effective results against the inflationary climate impacting the wider economy.

    Conclusion

    TSLA stock has had a rough year, most likely due to the fact that its previous highs reflected over-inflated trade multiples. The tumultuous 2022, with all its supply challenges and macroeconomic constraints, brought the stock crashing down in correction. Its recent pivot to prioritize volume over sales may be a rescue option to consider.

  • Five Top EV Stocks to Buy Right Now

    The push towards electrification and decarbonization has never been more apparent. With governments and international institutions on the same page as climate change activists, the targets collectively set seem almost like an inevitability. One area where we see this trend clearly reflected is in the growth of electric vehicle battery companies in recent years. What was once considered an unfeasible niche technology has seen rapid development and is on the verge of taking over the mainstream. With this growing momentum in this area of high promise, investors are faced with a stellar opportunity to gain big.

    Any market participant with some degree of foresight would confirm that riding this wave would result in monumental growth in the foreseeable future. This article aims to shed light on some of the most promising names within this domain. These five EV battery stocks are the best picks you could go with to ensure stellar capital growth.

    Lithium Americas Corp

    Up first is the Canadian emerging star, Lithium Americas Corp., (NYSE: LAC). The company is based in Vancouver, Canada, and currently oversees projects in both Nevada and the Argentinian province of Salta. LAC is crucial in the EV battery market, as it supplies lithium, a critical component in EV battery technology.

    LAC is a great example of how the EV industry has outperformed the wider market, amidst the wider uncertainties that have caused even giant corporations to plummet. Where the wider S&P 500 fell by almost 8% in the last 12 months, LAC climbed by an impressive 70%. This was in large part due to the fact that LAC supplies predominantly to firms developing EV batteries. Although this growth eventually flattened out, there is ample reason to anticipate an oncoming growth surge.

    The state of California recently introduced a lithium tax for all producers operating within the state. California presently holds most of the renowned lithium companies, which could see EV battery prices surging in the future. Lithium Americas, however, which holds its American facility in Nevada, turns out to be one of the few companies to avoid this significant tax. As a result, EV battery producers are likely to turn to LAC, in order to maintain their cost advantage. LAC stands positioned to see a huge wave of demand, as a result.

    For investors looking to get in on the EV battery growth wave, LAC is a great starting point for portfolios. As a critical supplier to the industry with a heavy competitive advantage, the stock is likely to soar and would easily make its place in top EV stocks.

    FREYR Battery

    Next up on our list is FREYR Battery (NYSE: FREY), which is based in the Western European country of Luxemburg. If there was one stock you’d bet on as a future global leader in the EV battery market, we’d urge you to go with FREY. FREY stands as perhaps one of the most ideally positioned stocks to capitalize on the EV battery boom that will inevitably take place.

    The core competitive advantage that FREY holds lies in its technological differentiation through the use of its sophisticated and innovative manufacturing approach. The company uses the 24M technology approach in developing EV batteries, which keeps its battery prices competitive, yet simultaneously makes its products some of the greenest and most sustainable across the market. The technology was the product of a spinoff by researchers at MIT, which was later acquired by FREY.

    Location-Based Advantage

    In addition to the disruptive innovation that the company benefits from, it also has one of the most optimal and sustainable locations. With its facilities based in Europe, the company is ideal in terms of its supply chain, when catering to one of the largest EV battery markets. European market participants have emphasized the need for European supply chains, as opposed to a reliance on Asia-based suppliers. This further adds to the cost-benefit associated with FREY and makes it a great pick in the wider context of Europe rethinking its energy security strategy.

    Although the company has focused primarily on research and development yet and is still in its pre-revenue phase, analysts anticipate a growth explosion to be imminent. According to analyst consensus, the company will deliver annual revenue of $8 million by the end of the year, which will then grow up to $2.3 billion by the end of 2025. This upward potential of such magnitudes remains highly impressive.

    A stock with so many positives, and so ideally positioned can only reach for the skies and it would remain in top EV stock for the long run. FREY is a great buy for any investor looking to gain from the EV battery sector.

    Albemarle Corporation

    Up next, we present the global specialty chemical giant, Albemarle Corporation (NYSE: ALB). As a lithium supplier, Albemarle caters to several different domains within the market, yet its segment which supplies components to EV batteries remains the most attractive. ALB is poised to dominate the EV battery space on account of the cost advantage it holds, as a result of its diverse portfolio of lithium derivatives.  Due to this, the company’s business is well hedged against the volatilities of the wider lithium market. This is what makes Albemarle a great choice for EV battery makers, who prefer to maintain cost-effectiveness for its end consumers.

    This business strategy has enabled ALB to see spectacular growth in recent years. In just the first quarter of 2022, the company achieved an incredible 165% earnings growth. It had managed to deliver earnings per share of $2.38, against the analysts’ expectations of $1.65. In addition to delivering you exposure to the booming EV battery market, ALB is also great for those looking for profit distributions. The company has increased its dividend payments without fail, for the last 25 years, in a consecutive manner. This is also a testament to the improving profitability the company has enjoyed over the years. With the burgeoning EV battery market, there is no stopping ALB from its growth ambitions.

    Tesla Inc

    The fourth stock on our list is the king of this domain itself, Tesla Incorporated (NASDAQ: TSLA). Tesla, under the leadership of the internet’s favorite billionaire Elon Musk, has been known for its innovation-oriented business approach. The company has not just been at the forefront of revolutionary electric vehicle design but has also made huge strides in battery chemistry. To further reinforce the company’s interest in taking the lead in the EV battery space, we look to its agreement with the Chinese battery cell producer, Gotion High-Tech, in late 2021. Moreover, a similar agreement was entered into with the Australian graphite miner, Syrah Resources.

    While these agreements are promising, the most significant for Tesla has been its partnership with the Michigan startup, Our Next Energy. The company installed its prototype battery into the Tesla Model S, which allowed it to drive a whopping 750 miles without the need for a recharge.

    These series of moves indicate that Tesla is fully aiming to take EV battery technology to the next level, and in the process, establish itself on the EV throne, by conquering every domain. Buying TSLA now could likely result in a highly robust portfolio in the future. The company is presently considering a three-for-one stock split, making its stock far more accessible to every participant in the financial market.

    Panasonic Corporation

    The final stock on our list, yet far from being the least is the globally renowned Japanese electronics company, Panasonic Corporation (OTC: PCRFY). Panasonic is most well-known for its household electronic appliances and other devices. Few however know that the company is one of the most significant names in the EV battery space.

    Panasonic is in fact an EV battery supplier to Tesla itself, which tells us the standard of battery the company is working with. The Panasonic management has recently revealed its strategic goals of further driving down costs of its EV batteries, which would ultimately result in its market share expanding significantly. In this spirit, the company owns a 49% stake in its joint venture with Toyota motors, in its efforts to develop prismatic, lithium-ion batteries.

    In the second quarter of 2022, Panasonic’s automotive segment, through which it supplies its EV batteries, saw an almost 30% year-on-year increase. This points to the financial promise that the company’s EV battery technology holds. It already enjoys the advantage of its globally renowned brand image, which eases with market penetration.

    Given all these points of strength, we here at Stocks Telegraph are confident about the potential Panasonic holds in the EV battery sphere. For anyone aiming to ride the EV battery boom, Panasonic is a must-have for your portfolio.

    Conclusion

    The EV battery market is at the forefront of the global transition towards electrification and decarbonization. For this reason, the market has been quick to restructure itself along these lines, with demand for these stocks seeing a spectacular rise. As EV batteries continue to become more energy efficient and less costly, their market growth potential surges. Each of the stocks mentioned contains an immense financial promise, and each is uniquely well-suited to see stellar growth in the short to long-term future. This class of stock offers unparalleled growth opportunities, which would enable investors’ portfolios to fly high in the short to long-term future.

  • Tesla Inc. (TSLA) Gives Another Beat Quarter Despite Supply Chain Chaos & Rising Costs Amid its Shanghai Outage

    Amid the woes caused by inflationary pressure and supply chain chaos to many, the tech giant Tesla Inc. (TSLA) gave another beat quarter with record earnings and deliveries.

    On April 20, shares of the EV maker rose by 6.84% in the pre-market when it posted beat earnings for Q1 2022. Thus, TSLA’s value reached $1,044.01 apiece in the session after it declined by 4.96% to $977.20 in earlier trading.

    Source: Anand Group

    Investors were confused and expecting not-so-good earnings as multiple factors caused the larger industry to face many challenges. Supply chain issues and hiking inflation had most o Tesla’s competitors grappling with production.

    TSLA’s Q1 2022 Overview

    The tech giant and leading EV maker gave another hit quarter with adjusted earnings pegged at $3.22 a share against $0.93 in Q1 2021. Beating Street’s forecast of $2.26 per share, the quarterly earnings grew by a humungous 246% YOY.

    Not just the earnings, TSLA’s revenues rose by a staggering 81% YOY with automotive revenues increasing by 87%. Thus, the total revenues were $18.756 billion for the quarter while analysts expected $17.76 billion.

    On the other hand, while production grew by 69% YOY, it fell a little short from the last quarter of 2021. Tallying at 305,407 vehicles in Q1 2022 against 305,840 in Q4 2021, the giant did get impacted by supply-chain disruptions and Covid-related closures at its Shanghai factory.

    Industry Situation & TSLA

    Like all other industries, the EV sector has also been hit by the pandemic, Russia-Ukraine-related concerns, rising inflation, supply chain disruptions, and labor costs. Most EV markers have been struggling with production amid a huge spike in material costs on top of supply chain chaos. But TSLA has been an outlier since the pandemic emerged. The giant has been posting record deliveries and earnings for several quarters while rivals keep wrestling with the market woes.

    What to Expect with Shanghai Closure amid the Frenzy?

    Investors were worried about the near-term growth of the company due to its Shanghai factory shut down as Covid resurged while supply chain disruptions continue amid rising inflation. TSLA’s Shanghai factory has been a large contributor to its explosive growth. Investors were expecting the impact of the closure to be prominent in Q2 more than in Q1 as the closedown happened near the end of March. But the latest earnings of the company and Musk’s discussion on it have investors take some relief. The price increase of its EVs is nicely exceeding cost inflation.

    Moreover, the increased prices are designed to cover higher costs for the next 6-12 months while Austin and Berlin are expected to make up for the slack from Shanghai. The company’s two new factories in Texas and Germany started deliveries recently.

  • Is Tesla, Inc. (TSLA) stock good for you in 2021?

    Is Tesla, Inc. (TSLA) stock good for you in 2021?

    It is estimated that the global electric vehicle market is going to grow with a 29% compound annual growth rate (CAGR) in the next five years. So, it is obvious that the companies working in the manufacturing of electric vehicles, battery, and energy storage would show significant growth in the future and Tesla (TSLA) stock is the leading company among them.

    Tesla, Inc. (TSLA), founded in 2003, is primarily working in the designing, developing, and manufacturing of electric vehicles in the United States and across the globe. TSLA stock is currently trading with $616.00 per share price, having an average trading volume of 30,955,950 shares a day and a market cap of $595.039 billion. Let’s take a closer look at Tesla stock.

    Tesla Business in China:

    Though the certain restriction in China has affected the Tesla business to some extent, analyst’ estimates show that the overall electric vehicle sales in China would likely increase by 5% to 10% in the next 10 years and acting as the major contributor in the manufacturing of electric vehicles, Tesla stock would get the maximum benefit in the future. According toChina Passenger Car Association (CPCA), Tesla delivered 33,463 vehicles in May 2021 representing a 295 monthly jump. Tesla delivered About 185,000 vehicles in the first quarter of 2021.

    Performance in Covid-19:

    In the pandemic era, Tesla stock sold about half a million cars across the globe which is not a usual number in the era where the cars were parked in the garage due to imposed covid-19 restrictions by governments. One analyst has projected Tesla deliveries to be more than 850,000 in the year 2021 which is far more than 500,000 deliveries in the last year.

    First Mover Advantages:

    TSLA stock has 25,000dedicated Supercharger stations installed and also leading in the manufacturing of autonomous vehicles as it has collected 3 billion miles of driving data as of March 2020 which is 150 times more than the data collected by Alphabet’s Waymo. Besides this, Tesla CEO Elon Musk is smart enough to devise the strategies in order to leverage the business.

    Financial View of Tesla stock:

    In the first quarter of 2021, TSLA stock reported $10.39 billion in revenue representing a 74% increase over the year. Earnings per share have surpassed the estimates of 73 cents per share to reach 93 cents per share and the net income of  $438 million was generated in the recently reported quarter.

    Future Plans:

    The new version of the Model S sedan has started to deliver in May 2021 and Model X deliveries will initiate in the third quarter of 2021. Furthermore, Tesla is also planning to launch an autonomous ride-hailing network in the future that could result in$1 trillion profit by 2030 according to Cathie Wood, CEO, and founder of Ark Invest.

    Competitor Analysis:

    TSLA stock is now facing a great rivalry in the automobile industry as companies like General Motors (GM), Ford, Inc (F), and Volkswagen are spending billions in the manufacturing of electric vehicles. These companies are well established and have a decade of experience in the automobile industry. Furthermore, BYD, Nio, and Xpeng are giving tough times to Tesla stock in the Chinese electric vehicle market via investing heavily in order to increase their market share. Another weak point of Tesla stock is that its share in the global market is less than 1% which is still very low as 70 million to 80 million new cars have been sold every year.

    Conclusion:

    For most of Tesla’s business, it has been unprofitable for investors but its performance in the last few years is exceptional. Though it is acting the lead role in the manufacturing of electric vehicles still it has a low global market share in the automobile industry. If it goes with the current pace, it will generate a lot of revenue in the future but investors should keep in mind that Tesla alone is not playing in the industry as many well-established EV stocks are present in the play.

  • Tesla (TSLA) Stock Continues To Soar After A Phenomenal Quarter

    Tesla (TSLA) Stock Continues To Soar After A Phenomenal Quarter

    Following the surge in value after Jan 2020 and the sequential correction, many doubted the integrity of TSLA’s second steep climb around the end of March in 2020. Fast Forward to 25th January 2021 and TSLA stock was priced at USD 900.40 for its highest value to date. Currently valued at just under USD 700 (a meteoric 700% increase from the start of 2020), TSLA saw a 2.36% jump at the last check on Thursday, April 8th, 2021.

    What happened?
    This jump coincided with the first quarterly delivery report for the year of 2021. Despite the automotive industry suffering across the board on account of a shortage of semiconductors, Tesla managed to have a record-breaking Q1 that shattered the expectations of analysts. With deliveries expected to be around 170,000, Q1 saw a whopping 184,800 deliveries that sets Tesla on the track to hit 750,000 deliveries for the year. This would be a 50% increase from the 500,000 deliveries fulfilled in 2020.

    How did it happen?
    There was a drop in deliveries of Model S and Model X vehicles from 12,200 deliveries in Q1 of 2020 to 2,020 deliveries in Q1 of 2021. However, the cessation of production and reduced deliveries of their pricier models can largely be attributed to the rolling out of newer versions of these models. This is sharply contrasted with Model 3 and Model Y vehicles reporting 76,200 combined deliveries in Q1 of 2020, with cumulative deliveries seeing a 140% increase to 182,780 deliveries in Q1 of 2021. Production of their Model Y started in Q4 of 2020 in China and plays a significant part in Tesla’s performance in 2021 so far, having been generally very well received.[4]

    What happens next?
    With such strong numbers and promising growth, investors have had their confidence in the company assured. This news in tandem with President Biden’s focus on the EV sector in the recently unveiled infrastructure budget plan has consolidated investor presence in the EV sector. Not just for Tesla, shares across the EV sector have seen a positive shift, now poised on the verge of further growth.

  • Tesla Inc. (TSLA) stock rises in the pre-market trading. Here’s to know why?

    Tesla Inc. (TSLA) stock rises in the pre-market trading. Here’s to know why?

    Tesla Inc. (TSLA) stock plunged by 0.93% at the last trading close whereas taking turnaround the TSLA stock rises by 7.67% in the premarket trading session after Tesla reported its record first quarter delivery. Tesla is an electric vehicle and renewable energy company. Tesla’s latest offerings include electric vehicles, home and grid-scale battery energy storage, solar panels and solar roof tiles, and other associated products and services.

    What is happening?

    Tesla announced that it has delivered 184,800 electric vehicles in the first quarter of 2019, surpassing the previous high of 180,570 units set in the fourth quarter of 2020. Furthermore, 1Q vehicle shipments were significantly higher than analysts’ estimates of 177,822 units. TSLA stock first-quarter deliveries were also up 109 percent from the same quarter a year earlier, when the company shipped 88,400 electric cars.

    The Model Y and Model 3 accounted for 182,780 of the total, representing a 139.9% rise year over year. However, deliveries of the Model S and X dropped 83.4 percent year over year to 2,020 vehicles. The quarter’s overall production rose by 75.6 percent year over year to 180,338 units.  TSLA stock announced that its Model Y electric car has been well received in China and that it is on track to reach full production.

    Furthermore,

    Daniel Ives who is a Wedbush analyst said that the Q1 delivery numbers that has been released on Friday were a paradigm shift which shows that global pent-up demand for Tesla’s Model 3/Y is approaching its next stage of growth as part of a global green tidal wave. Despite the chip shortage and numerous supply chain issues lingering throughout the auto industry, we now believe TSLA stock could surpass 850k deliveries for the year, with 900k as a stretch target.

  • What are the TOP 3 Electrical Vehicle stocks for 2021?

    What are the TOP 3 Electrical Vehicle stocks for 2021?

    Do you think that 2020 was the best year for Electric Vehicles and their shares in the market? Think again. There is going to be a blast of profits in the year 2021. Let’s dig into the details.

    We all saw an incredible increase in the usage of electric vehicles in 2020. The electrical industry is based on those companies that are manufacturing electric cars, electrical and commercial automobiles, vans, and trucks. Tesla, Eorkhorse Group Inc, Arcimoto are developing, growing and getting profits by leaps and bounds. For instance, in the year 2020, Russell 1000’s gross total return had been 21.2%. Tesla Inc. had a 21.8% price-to-sales ratio. In 2021 they are growing higher and are estimated to gain more benefits from manufacturing electric vehicles.

    When the companies invest dollars into manufacturing, they must know what will be the outcome. To reach profitability, you have to be cautious about making the right investments. Elon Musk is the founder of Tesla. This company is making huge gains making Elon the richest man in the world. Let’s ponder over the 3 top Electrical Vehicles stocks for 2021:

    1: Tesla Inc. : (NASDAQ: TSLA)

    When Elon Musk added Tesla to the S&P 500 index, Musk’s net profits abruptly pushed to the sky. The recorded total net worth of Elon musk was $60 billion. It’s now the largest publicly traded company and comes at the sixth position in the US. It will not slow down in making profits. It’s worth $834 billion even now. Just think about where it is going. All the competitors, including Johnson & Johnson, Berkshire Hathaway, Walmart, are left far behind. Tesla is going to be more profitable this year. Today Elon Musk’s net worth is 190 billion dollars approximately, $22 billion in 2019.

    2: Nio Inc : (NYSE: NIO)

    Nio knows how to grab the best opportunities in the stock market by making the right moves. It’s fast and furiously speedy EP9 supercar has blown the shadows of bankruptcy with a BOOM. Nio Inc. manufactures family-friendly high-performance electrical vehicles such as Sedans. It was facing difficulties at the start of 2020 when it’s share price was just $3.24. Due to making swift strategy moves, it’s going to become an electrical superstar manufacturer pretty soon.

    When it launched the “Battery-as-a-service” platform and the Chinese invested in multi-billion-dollars, its stock started trading higher at the stock market, having a massive increase of 160.4%. Currently, Nio’s share price is $7.00 and has a market cap of $813 billion. IN short, Nio Inc. is an innovative electric vehicle manufacturer, growing higher, showing large-scale future growth potential.

    3: Facedrive: (FDVRF)

    Facedrive is delivering its services to provide the customers with a virtual gallery of electric vehicles. It has established an electric vehicle subscription service in the United States of America. Moreover, The “EV on-demand” subscription allows the customers to ride in Audis, Teslas, Porsches, and many other vehicles daily. They can ride in a new car every day. Just order with a click, and the car will be delivered at your doorsteps; open the door and dive into your new car. Don’t worry about maintenance and insurance. It’s Eco-friendliness, easy usage, and convenience makes it the best choice for consumers. Ultimately increasing its share price in the US share market.

  • How Challenging It Would Be For Tesla To Penetrate The Indian Market

    Tesla is hitting the Indian market as the country’s authorities have announced that the Model 3 sales would open in the first quarter of 2021. The organization will open an assembly plant in the future, which would also concentrate on local demand. A matter of speculation for the industry remains the price tag for the Indian Tesla. If the Model 3 selling price is now around $30.2 thousand in California, then the same model is offered in China for $38.2 thousand, considering the fact that manufacturing is based in Shanghai. The starting price in the new market may be 5.5 million rupees, or $75 thousand, according to the Indian media. This makes the Indian Tesla immediately representative of luxury cars and decreases the number of potential sales dramatically.

    India is not yet a big luxury and business class vehicle segment, but sales are increasing faster there than in other nations. The Indian market will become the third largest of all groups (after China and the United States) and the most competitive in the luxury niche by the end of this year. A second attempt will be the arrival of Tesla in this region. Because of stringent rules, this was not possible in 2017: the legislation limits car sales with a local production share below 30 percent. If the company manages to reach India for the second time, substantial investment in the charging system would be required.

     Since recently joining the large S&P 500 index, Tesla shares are keeping steady at mid-December prices. The stock is now only at 4% of its absolute highs. Despite the smooth rise of the company’s share projections for the next year, the real stock price is already 61% higher than the analysts’ estimate, and the sector value remains abnormally high as P/E of 1319 is almost 60 times higher than the market average. Either the autumn correction or the drawdowns in December did not interrupt the uptrend in Tesla shares. The stock targets the 900 mark in the medium term, which gives growth of up to 40 percent. Given the change in global demand for undervalued stocks, however, Tesla is highly likely to display modest growth next year, not exceeding the S&P 500’s average dynamics.