Tesla Inc. (NASDAQ: $TSLA), the world’s foremost automaker in terms of market value, specializes in the design, construction, and promotion of fully electric vehicles (EV), alongside energy generation and storage systems.
The company further extends its services through vehicle service centers, body shops, and charging stations, offering a comprehensive electric mobility solution. Tesla’s product portfolio encompasses mid-size sedans, full-size sedans, as well as compact and mid-size sports utility vehicles (SUVs).
The inception of Tesla dates back to 2003 when it was established as Tesla Motors by Martin Eberhard and Marc Tarpenning. Notably, Elon Musk became involved with the company, investing in it and assuming the role of chairman the subsequent year.
A legal resolution was reached following Eberhard’s legal action against Musk, allowing both individuals, along with Tarpenning and early recruits Ian Wright and J.B. Straubel, to be recognized as co-founders.
Originally conceived as a manufacturer of electric vehicles and associated components, Tesla has since diversified its operations into energy generation and storage solutions. Tesla embarked on its public journey with an initial public offering (IPO) on June 29, 2010.
In 2021, Tesla shifted its corporate headquarters from its longstanding location in Palo Alto, California, to Austin, Texas. Elon Musk serves as Tesla’s Chief Executive Officer, driving the company’s vision and innovation.
For investment classification, Tesla’s stock falls under the consumer discretionary sector. Notable competitors in Tesla’s sphere include established automakers like Ford Motor Co. (F) and General Motors Co. (GM), as well as emerging electric vehicle manufacturers such as Lucid Group Inc. (LCID) and China-based NIO Inc. (NIO).
In the fiscal year 2021, which concluded on December 31, 2021, Tesla reported a net income of $5.6 billion on revenue totaling $53.8 billion.
Tesla Stock News
$TSLA Stock Shows Aggressive Buy Signal
Tesla (TSLA) seems to have shrugged off any lingering investor concerns stemming from its third-quarter delivery shortfall earlier this week. TSLA shares surged past a significant threshold, leading the S&P 500 on Wednesday.
Optimistic Tesla supporters are banking on a fourth-quarter resurgence in deliveries, driven by the revamped Model 3 in China and the imminent launch of the Cybertruck. As a result, Tesla’s stock experienced a robust 5.9% increase, closing at 261.16 during Wednesday’s market session.
Nonetheless, analysts are revising their third-quarter earnings per share (EPS) estimates ahead of Tesla’s Q3 earnings announcement scheduled for October 18.
TSLA managed to surpass its 50-day moving average on Wednesday and has earned a place on IBD Leaderboard and SwingTrader. Aggressive investors are eyeing a buy zone ranging from 254.77 to 258.40. Late on Tuesday, Tesla unveiled its latest U.S. Model Y variant, now available in the United States.
The entry-level price for the rear-wheel-drive Model Y is set at $43,990, offering an official range of 260 miles, as per Tesla’s website. Deliveries are slated to commence in October or November.
This marks a year-long trend of progressively lower average selling prices for Tesla electric vehicles (EVs), compared to the prior base Model Y, which started at $47,740.
Simultaneously, Rivian (RIVN) witnessed an 8.6% leap to 23.56 on Wednesday. Rivian stock currently hovers just below an early entry point of 24.87, with an official buy point at 28.06, according to MarketSmith analysis.
Last week, Tesla’s stock registered a 2.2% gain, closing at 250.22. On Monday, shares managed to close slightly above the 50-day moving average, before experiencing a minor pullback on Tuesday.
Tesla’s stock is currently situated within a cup-with-handle base pattern, featuring a 278.98 buy point, according to MarketSmith.
Analysts also note that the ongoing United Auto Workers strike against Ford (F), General Motors (GM), and Stellantis (STLA) could bode well for Tesla, which operates as a nonunion entity.
In terms of rankings, Tesla’s stock occupies the fourth position within the 35-stock IBD automaker industry group. The S&P 500 constituent boasts a Composite Rating of 96 out of a possible 99, along with a 94 Relative Strength Rating and an impressive EPS Rating of 93.
From Model S Debut to Now: What a $1,000 Tesla Investment Looks Like?
Tesla stands as one of the most globally recognized brands, not only as a pioneering force in the electric vehicle (EV) sector but also owing to its enigmatic CEO, Elon Musk, who continually captures the public’s attention.
The company’s journey commenced on July 1, 2003, culminating in the launch of its inaugural vehicle, the Roadster, in 2008. Subsequently, Tesla introduced the Model S in 2012, followed by the Model X in 2015 and the Model 3 in 2017.
Today, Tesla Inc. holds the distinguished title of the world’s most valuable automaker, largely propelled by its commanding 59% share of the U.S. EV market.
Nonetheless, despite its triumphant ascent over the initial two decades of its existence, Tesla has merely scratched the surface of its boundless potential. The future appears exceedingly promising.
One imminent milestone is the highly anticipated delivery event for the innovative Cybertruck, slated to occur by year-end. This presents a remarkable opportunity for Tesla to make significant headway in the expansive U.S. full-size truck market.
Furthermore, Tesla’s growth potential extends beyond domestic borders to international markets, with China serving as a compelling example. Tesla’s market share in China skyrocketed from 7.5% in July to an impressive 13.2% in August.
A pivotal moment in Tesla’s history arrived with the introduction of the Model S, the company’s first mass-market offering. On June 22, 2012, the stock opened at $2.17 per share, providing an opportunity to acquire 460.82 shares at that price point.
In light of subsequent stock splits in 2020 (5-for-1) and 2022 (3-for-1), the total share count underwent significant growth. Following the 2020 split, the original 460.82 shares burgeoned to 2,304.1 shares. The 2022 split further elevated this count to 6,912.3 shares.
Taking into account the prevailing share price of $251.34 at the time of this publication, an initial investment of $1,000 on June 22, 2012, has burgeoned into a value exceeding $1.73 million today.
Tesla’s remarkable journey continues to captivate investors and enthusiasts alike, with its future trajectory poised for even greater achievements.
Tesla Stock – FAQs:
Is Tesla Stock Good for Long Term Investment?
As the electric vehicle (EV) market experiences heightened competition and pricing battles due to an influx of contenders, Tesla has the potential to not only navigate these challenges but also generate substantial value for its shareholders in the long run.
What is the Highest Stock Price for Tesla?
As of September 29, 2023, the closing stock price for Tesla stands at $250.22. Tesla achieved its all-time high stock closing price on November 4, 2021, reaching $409.97.”
Is Tesla a Profitable Stock?
According to analysts’ consensus forecasts, Tesla is expected to maintain its core automotive gross profit margins at 18.1% in Q3, despite implementing several price reductions and discounts since the close of June.
Looking at the full year, Wall Street anticipates a 17% decline in earnings, with projected earnings per share (EPS) at $3.35.
This projection comes even as Tesla achieves a substantial sales milestone of $100.08 billion, reflecting a remarkable 23% surge compared to the figures from 2022.
What Can We Expect from the Tesla Stock?
Deutsche Bank revised its price outlook for Tesla stock, citing significant challenges for the electric vehicle manufacturer’s earnings in 2024.
While maintaining a buy rating for the stock, the bank adjusted its price target for Tesla shares to $285 each, marking a 5% reduction from the previous target of $300.
Why is Tesla Stock Good to Invest In?
Largely through his own efforts, Musk has disrupted the automotive industry, effectively compelling it to embrace the electric vehicle revolution.
This is a key factor behind Tesla’s outstanding performance as a stock, particularly during its remarkable surge from mid-2019 to late 2021..
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