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why tesla stock so high

by Tyree Mraz Published 2 years ago Updated 2 years ago
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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.

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.Mar 23, 2022

Full Answer

Should you buy TSLA stock?

So, why is Tesla stock so high? Automakers are among the industries struggling with supply chain issues from the novel coronavirus pandemic. Global manufacturers from Shenzhen to Detroit slowed, halted, or shifted manufacturing operations toward PPP and medical equipment during the 2020 economic crisis.

Would it be worth buying 1 share of Tesla stock?

Mar 22, 2022 · For a sixth straight day, shares of electric vehicle (EV) star Tesla ( TSLA 1.10%) drove higher on Tuesday, up 2.5% as of 12:45 p.m. ET. CEO Elon Musk might be personally responsible for that with ...

Why is TSLA so overvalued?

Jan 25, 2021 · ACES — Autonomous, Connected, Electric, Shared. Elon Musk has owned global headlines as his company has skyrocketed by over 700% in the past year. In January 2021, Tesla became the fifth most valuable company, surpassing Facebook by market capitalisation. As the world moves forward, driven by government regulation to reduce CO2 levels, Tesla ...

Why everyone should sell Tesla stock now?

Apr 07, 2022 · Tesla ( TSLA -0.35% ) stock galloped out of the gate Thursday morning -- up 2.3% as of 10:25 a.m. ET before falling back around midday -- as the company announced a "Cyber Rodeo" to celebrate the ...

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1. Autonomous, Connected, Electric, Shared (ACES) ecosystem

In 2019 only two million electric vehicles were sold globally. Electric vehicles represent a minor 2.5% of the global light-vehicle (LV) market, so there are significant growth opportunities for EVs.

2. Competition from EV manufacturers

Tesla has a strong advantage over competing EV manufacturers because they have already built their own products and services across the ACES ecosystem. Tesla has also developed customer interfaces which integrate with all of its Tesla models.

3. Downstream revenues through mobility as a retail service

Tesla has the opportunity to become the dominant ‘aggregator’ for customer revenue streams. According to KPMG, downstream revenue streams could increase ten-fold over a ten-year lifetime period of a vehicle.

What does the future hold?

Autonomous, Connected, Electric, Shared vehicles have a long way to go; however, there has already been substantial technical progress paving the way for EV manufacturers in light-vehicles and electric trucks (eTrucks). Electric vehicles and trucks are already entering markets worldwide.

TSXV:WML

In the first quarter of 2020, Tesla produced 103,000 vehicles, only 4% of the vehicles produced by Toyota in the same period.

But Wait! There's More..

As Elon Musk loves to push the envelope whether its creating electric cars or sending rockets into space or selling flamethrowers. It was not entirely surprising that Mr. Musk took to Twitter on Monday to reveal his newest creative venture. Musk is launching short shorts, Yes, short shorts!

Is Elon Musk the face of Tesla?

Two words: Elon Musk. The Tesla founder isn’t just the face of the company. He is the company. He’s outspoken, brash, and a supposed visionary. He attracts investors. As a February Global Bubble Status Report from the Financial Crisis Observatory made clear, Musk has packaged the carmaker in a “fancy storyline.”.

Is Tesla the most valuable car company?

It’s no accident that Tesla has become the world’s most valuable car company during a global pandemic. The present for carmakers looks grim, so investors can only daydream about the future. Once that future finally arrives, speculators will see their Tesla stock investment for what it was all along. A mistake.

Is Tesla a dotcom?

Tesla is a self-contained dotcom bubble. It has artfully generated FOMO on a large scale. Based on an association with high technology and a nicely curated image of the “future,” it has created its own stock mania. There’s little doubt that this mania will end sooner or later.

Is Tesla the most valuable company in the world?

It's no accident that Tesla has become the world's most valuable company during a global pandemic. | Source: REUTERS/Rashid Umar Abbasi. Tesla’s stock continues to rise to ridiculous heights. Its fundamentals don’t come close to justifying its price. Tesla’s market cap is over 6,000 times greater than its 2019 earnings.

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