Tesla

Tesla is the giant EV manufacturer at present. Tesla also provides services via its vehicle service centers, body shops and charging stations. In 2021, it delivered around 936,000 vehicles. In 2022, Tesla expanded its manufacturing plants with opening new factories in Texas and Berlin to increase production of vehicles.

Market for EV is booming, due to rising fuel prices and new government laws supporting EVs and other factors.The United States has now crossed 6% in total market share and is working towards its goal of 50% market share by 2030.Its low emission aspects surely helps the sector be in demand in the future. Tesla began delivering EVs from 2008 has acquired a good amount of market, giving a good competition to traditional fuel vehicles making companies like Ford(#F), General Motors (#GM), Toyota(#TM), Rivian(#RIVN). 

Market acquired by Tesla:

Tesla, being the pioneer of the EV, has always acquired the market share in the respective sector. In 2022, the market share of Tesla in the first quarter was around 75% and 66% in the Q2 of 2022.  As per the Q3 2022 reports, Tesla remains the EV market leader with 64% of market share. Various other new and established automobile companies are turning toward producing EVs. The competition might get tough in the upcoming years. However, world is changing towards EVs and the sales number of Tesla Vehicles will help Tesla to be profitable.

The Table below presents the data of the number of EV sold by the Companies in the year 2021 and 2022 respectively. Tesla stands way ahead of the other companies.

Source: Cox Automotive
 

What does Tesla’s Financial reports have to say?

In 2020 Tesla began making a whole lot of profit, throughout the year. And has been performing strongly till now. If you are planning to invest in Tesla, you should be able to have a great opportunity for the company to perform well in the future. 

The table below provides brief information from the company’s recent quarterly results:

	Q3 2022	Q32021	%Change YoY
Total Revenue	21,454M	13,757M	56%
Net Income	3,654M	2,093M	75%
Total Vehcles Deilvered	343,830	241,391	42%
Free Cash Flow	3,297M	1,328M	148%

 

The main consideration to keep in mind is the increasing number of products a company is able to deliver to the customer. The “Free Cash Flow” indicates that apart from the operational expenses, the company has free cash that can be used for further operations or to invest in purchasing more assets or investing in other companies. 

Tesla’s financial reports definitely reflect its strong base. However, the success of the company depends on various factors and one of them is how efficiently they are able to supply the increasing demand of the EVs. 

Click on the link to go through Tesla’s Q3 2022 report.

Tesla has major plans for the next 5 years including the following:

• Tesla Robots
• Tesla Model S Plaid Plus.
• Tesla Cybertruck.
• A new Texas Gigafactory.
• Tesla Semi truck for industry.
• New Tesla Roadster with longer range.
• More international Gigafactories.
• The possibility of a cheaper Tesla vehicle.

PS: EV manufacturing companies are facing shortage of batteries (read more). However, Tesla has its long term contract with its supplier, Panasonic. And it is not something that cannot be solved in the near future. 

 

Technical aspect:

When investing in a stock, one should be more focused on the fundamental analysis of the Stock. Technical analysis will help to get an idea of entering the Stock into the right time at the right price range. Tesla’s price chart shows that if it falls more, it will be entering into a strong buying zone. 

If we look at the price chart of TSLA on a Weekly time-frame, it shows that tsla is entering into the Buying Zone. The green rectangle (range $110 to $124) is the first level that the price will react. Previously the price consolidated above the level of $124 and went up make a new high at that time. TSLA  was trading at an all time high in January 2022, after which it kept falling, breaking all the support levels.  The yellow box is the price consolidation zone, if the price consolidates at this range, we might be able to see a strong price movement on either side. However, if the price is not able to sustain the buying zone drawn on the chart, the next supporting level would be at $92 and $55.

The price might go around $92. And it is needless to say that the stock price of a company like TESLA handled by  its CEO Elon Musk, with strong accounts would drop to $55. By any chance if the price goes below $90, everyone would be eyeing to buy the stock at such a discounted price. So it is a good price to keep accumulating.

 

 

Things to keep in mind while investing in stocks.

1. Invest the money that you will not need for at least the upcoming 5-10 years. Never use the emergency funds that you will require in the near future. 
2. Invest in the company that you feel has the opportunity of growth in the future, not in the trend. 
3. Consider making a partial investment, so that if the price dips you should have enough funds to average down the price of the stock that you hold. For example, you have a budget to buy 10 stocks of Tesla. Instead of buying the whole 10 shares, buy 5 or 7 stocks. Keep space for the remaining ones, for if things go south means if the stock price dips.
4. Do your own due diligence before investing your money in the stocks. This will boost your confidence to either make an investment in that particular stock or not to.

 

⚠️ The article is prepared accumulating information from various sources on the internet. some might be linked, some might not be.