- Tesla's stock has surged more than 20,000% since it went public in 2010.
- The searing rally has been driven by production growth, EV frenzy, and frontman Elon Musk.
- But many Wall Street analysts say Tesla's bloated stock price is a bubble that's bound to pop.
Full Answer
Why did Tesla stock go up so much?
Tesla Inc.’s $2.6 billion acquisition of SolarCity was just a bailout of the troubled sun-power provider engineered by Elon Musk, a lawyer for investors suing the Tesla chief told a judge. “At every turn Musk intended the acquisition to be a bailout ...
Should you buy TSLA stock?
Tesla Inc. closed $226.46 below its 52-week high ($1,243.49), which the company reached on November 4th. The stock demonstrated a mixed performance when compared to some of its competitors Friday, as Toyota Motor Corp. ADR rose 0.87% to $182.35, General Motors Co. rose 6.02% to $63.21, and Honda Motor Co. Ltd. ADR rose 1.28% to $28.47.
Will Tesla stock keep falling?
Tesla stock gained on Monday as EV stocks recovered ground ... and we would have expected Tesla (TSLA), Rivian (RIVN) and Lucid (LCID) to fall significantly. So the move on Monday is a bit surprising and perhaps an early indicator that a short-term ...
Why are Tesla stocks rising?
© Provided by Benzinga Tesla, Inc. (NASDAQ: TSLA) shares are trading higher amid overall market strength and a rebound in growth names. The move is also possibly related to anticipation of the company's fourth quarter earnings report.
Why is Tesla stock growing so much?
Higher rates hurt richly valued growth stocks such as Tesla more than others because the bulk of those companies' profits are expected to roll in years from now. When rates rise, the discounted current value of those future earnings falls. The move seems to be a carry-over from events earlier in the week.
Is Tesla a popular stock?
(NASDAQ:TSLA) ranks 26th on our list of the 30 Most Popular Stocks Among Hedge Funds. Tesla, Inc. (NASDAQ:TSLA) was in 91 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 60 funds in the previous quarter.
Is investing in Tesla a good idea?
Strong growth and superior profitability In terms of vehicle production, Tesla has been full of great news in recent reports. Q1 production rose 69% year over year, which drove automotive revenue growth by 87% year over year.
Is Tesla stock overrated?
Tesla 's market capitalization recently moved well past $1 trillion, but the independent investment-research firm New Constructs believes the company is overvalued by roughly $1 trillion of that. The firm's CEO, David Trainer, says Tesla shares could fall as much as 88%, to roughly $150 a share.
Is Tesla a buy in 2022?
Tesla stock has had a tough 2022, but now UBS has upgraded shares to Buy from Neutral while keeping its price target unchanged at $1,100.
Will Tesla split again in 2022?
Today, as part of the release of its prospectus for its 2022 annual shareholder meeting, Tesla announced that it is going with a three-for-one stock split – meaning that if you own one Tesla share, you will get two more.
Do Tesla pay dividends?
Plus, Tesla does not pay a dividend to shareholders, which is also an important factor for income investors to consider.
Should I buy a Tesla now or wait?
On the flip side, he needed a car to drive, and it comes as no surprise he bought another Tesla. He ordered a new Model Y, but it won't be coming soon, so the 2018 Model 3 was the best option....Regardless of why this owner did it, he vows to never do it again.CategoryIndustry Outlook Buying TipsMakeTeslaMay 2, 2022
Is it a good time to Buy Tesla stocks now?
Tesla Inc (NASDAQ:TSLA) stock ended April with an $870.76 close, putting its loss for the month at 23.98%. That's a very poor showing, even for 2022.
Is Tesla a bubble?
Few investments in recent years have generated as much debate as Tesla (TSLA). To some, the shares of Elon Musk's company are insanely overpriced, a bubble that could pop at any time and blow up a portfolio.
Why Tesla value is so high?
Tesla's gross profit margins are better than industry peers. That's one reason Tesla gets a premium valuation. Jonas also believes that Tesla will sell more stuff such as insurance and self driving software that can generate recurring sales. That's new for the auto industry and has the potential to add to profits.
Why is Tesla so successful?
Tesla sells directly to consumers. It has created an international network of company-owned showrooms and galleries, mostly in urban centers. By owning the sales channel, Tesla believes it can gain an advantage in the speed of its product development. More importantly, it creates a better customer buying experience.
When did Tesla stock split?
A stock split in summer 2020, which made Tesla shares more affordable to individual investors (even while changing nothing about the stock's fundamental value), helped drive retail investor enthusiasm. And Tesla's addition to the S&P 500 later that year, a de-facto vote of confidence by the index committee which compelled funds that track the index to buy the stock, helped even further.
How many cars did Tesla sell in 2020?
Tesla also doesn't sell even close to the amount of vehicles as the competitors its valuation now dwarfs. Tesla sold just shy of 500,000 cars globally last year. In the US alone in 2020, GM's total sales were more than five times that amount, while Ford sold nearly 800,000 F-Series pickups.
How much did Tesla lose in 2020?
Short sellers lost $38 billion over the course of Tesla's monumental 2020 rally. That epic surge has made Tesla the most valuable car company in the world, catapulting it above and beyond Goliaths like Toyota and Ford.
Where is Tesla made in 2021?
Investors and analysts have reason to believe that Tesla's production capacity will grow substantially in 2021 as new manufacturing plants in Berlin, Germany and Austin, Texas get up and running. And many think demand for Tesla's cars will keep growing, especially in China — where the EV maker has already done exceptionally well.
Who is Elon Musk?
There's a final factor that can't be overlooked: outspoken chief executive Elon Musk. The eccentric, meme-loving mogul has inspired legions of loyal Tesla evangelists and investors, largely through his irreverent Twitter feed and other ambitious ventures like SpaceX, PayPal, and Neuralink.
Is Tesla's valuation grounded in reality?
Tesla's sky-high valuation, many argue, isn't grounded in reality. Despite all of those potential upsides, many experts argue that the frenzy surrounding Tesla is nothing more than a bubble that will burst sooner or later. By conventional measures, they point out, Tesla's valuation is completely out of whack with the rest of the auto industry.
Why do people buy Teslas?
He is also an iconic figure for millions. Many of these millions are of driving age. They are buying Teslas and have a very good reason to believe they are buying more than just an electric car. For many of them, buying a Tesla is buying a vision of a better, more sustainable future.
Who is the founder of Tesla?
The Musk Factor. It’s no secret that Elon Musk is at the heart of Tesla’s success. A controversial figure, no doubt, but the man who, according to most, made Tesla what it is today. Tesla is the first—and only so far—car company with a mission.
Which carmaker has the most satisfied customers?
Last year Tesla became the carmaker with the most satisfied customers for the third year in a row. Consumer Reports said at the time Tesla had received 98 out of 100 points regarding the driving experience, comfort, value, and styling, as well as things such as the audio and climate systems.
Is Tesla charging free?
So Tesla built a Supercharger network where charging is not just quick, it is also free. At one point, Tesla began to phase out the unlimited free charging option with CEO Elon Musk saying it wasn’t sustainable. But last year, it appeared Musk had changed his mind and Tesla brought back the free unlimited option.
Do Tesla fans mind?
Tesla fans don’t seem to mind as they are given the opportunity to configure their own car in the comfort of a location of their choosing instead of haggling over the price and waiting for hours to sign all the papers that accompany a traditional car purchase.
Can you buy a Tesla on the internet?
The question of whether Tesla would be where it is today if it weren’t for the internet is an interesting one and the answer is probably no. The internet is the only place one can buy a Tesla, directly from the company. This is another unique take on car-making and sales on the part of Tesla, by the way. There are Tesla stores around the world, but they are information centers and not dealerships. You can learn everything you want about the cars at a Tesla store, but you can’t buy a car there.
Did Tesla change the way people view electric cars?
If there is one thing even Tesla skeptics would agree on it is that Tesla changed people’s perspective on electric cars. All electric vehicles before the Model S were, to put it mildly, unsatisfactory for any driver. They were plain ugly, they were heavy, and they took forever to charge. No wonder interest in electric vehicles was sporadic at best.
NASDAQ: TSLA
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The electric vehicle maker has created massive amounts of wealth for investors, but there's one big reason to consider selling today
The auto industry is clearly shifting toward electricity, with every major automaker pushing hard in the electric vehicle (EV) space. However, it was Tesla ( TSLA 1.14% ) that really got the ball rolling on this front, and investors have clearly noticed.
1. Tesla is hyper-focused on the clean energy transition
Tesla is, basically, the leading pure-play electric vehicle maker. There are others in the niche, but Tesla has long been the name to beat. And at this point, it is actually turning a profit, with positive earnings in each of the last five quarters. For many years the company basically just bled red ink.
NASDAQ: TSLA
The key difference is that Ford and its peers are largely trying to balance the shift from gasoline to electricity. Tesla doesn't need to do that. In addition to cars, meanwhile, Tesla also has its hand in solar power and battery technology.
2. Tesla has visionary leadership
Tesla is the brainchild of CEO Elon Musk. He's sometimes compared to Tony Stark from the Iron Man comic series, which is a way to suggest that he's a wealthy genius do-gooder.
3. Tesla has plenty of growth opportunity
A hyper-focus on a growing industry niche with a visionary leader at the helm. There's a lot to like in that description. However, what's really interesting here is that, assuming Tesla can maintain its industry cachet, there's a lot of room for it to gain ground on older competitors that simply don't have the same image.
Time to lock in some gains?
The big problem with Tesla, and one that investors should really think about closely, is valuation. There is a number of ways to look at this, but the one that is probably the most shocking is market cap. Tesla's market cap is roughly $1.1 trillion, compared to Ford's $77 billion and General Motors' $89 billion.
The top electric vehicle maker has a simple formula for earning high margins -- and it isn't unique to Tesla
Adam Levine-Weinberg is a senior Industrials/Consumer Goods specialist with The Motley Fool. He is an avid stock-market watcher and a value investor at heart. He primarily covers airline, auto, retail, and tech stocks. Follow him on Twitter for the latest news and commentary on the airline industry! Follow @AdamLLW
Production and revenue surge
Tesla delivered over 936,000 vehicles in 2021: up 155% from the 367,656 vehicles it delivered two years earlier. The Model 3 sedan and Model Y crossover, which are built on the same platform, accounted for 97% of Tesla's output last year.
A recipe for fat margins
Selling nearly 1 million vehicles in a year at an ASP of more than $50,000 is obviously good for margins. That's especially true because the Model 3 and Model Y are built on the same platform and share many components. This significantly reduces complexity (and costs).
What does it mean for Tesla?
Tesla's strong momentum will likely continue in 2022. The company has projected that it will grow sales at a roughly 50% compound annual growth rate for the foreseeable future. Unless supply constraints worsen dramatically, it should have no trouble hitting that growth rate this year.
