Things to know if you want to invest in Tesla
TESLA is specialized in producing fully electric vehicles, energy generation, and storage systems to boot. The energy generation and storage segments include the design, the manufacturing, the installation, sale, and lease of stationary energy storage products and the solar energy systems. Tesla also sells electricity, generated by its solar systems. The company also provides vehicle service centers like supercharger stations and cars with self-driving capabilities.
For half a year, 85% of the company revenue was generated by automotive sales.
In 2010 TESLA went in public and offered 13.3 million shares, each one at $17. Now the stock trades each share for more than $1,430.
The company TESLA has a big story, they had experienced a lot of manufacturing deadlines, they have heard a lot of controversial comments, and there was an unstoppable stream of traders, ready at any time to short the TESLA stock.
The shares of TESLA have surged more than 230% until now. At the end of July, it will be reported the earnings of the second quarter of 2020 and a lot of investors will ask themselves if they should bye TESLA’s stock.
At first, an investor must look at the market capitalization of the company. TESLA is the world’s largest automaker by value, and its market capitalization is around $265 billion. TESLA became bigger than all its older competitors. All of them started to manufacture their own electric and eco-friendly automobiles, but Tesla continues to be dominant at the market.
Now Tesla is trading up with 300% from March’s market sell-off. The company soon announced that the next Gigafactory in the U.S. will be in Austin, Texas. It will be used to assemble the Cybertruck and Tesla Semi, Model 3, and Model Y and will sell in the eastern half of North America.
Due to the pandemic, there were some expectations that the disruptions on the production will derail the company goals for this year, but surprisingly the company showed very good results in the first quarter (the deliveries grow by 13% comparing to last year) and strong numbers in the second quarter. (Tesla made 90 891 automobile deliveries). The expectation of $5.2 billion in revenue was outpaced by $6.04 billion. The net income was $104 million, 50 cents per share, comparing to the last year when the company had a $408 million loss and $2.31 per share.
This is the fourth consecutive quarter of profitability which could have serious implications for the stock going forward.
Another thing you can look at if you are thinking about investment in Tesla is that the company is among the top 10 most popular holdings on commission-free trading app Robinhood. More than 530,000 users own the stock of the company, which is placing it right behind the other big Technology names as Apple and Microsoft.
When you look at Tesla’s CEO Elon Musk, it is hard to not be interested in the company. He also owns SpaceX, which manufactures rockets and rockets engines, and he’s got the goal to reduce the costs of spaceflight and send humans to Mars. In 2018 he launched a red Tesla roadster and SpaceX rocket into space. In the red Tesla automobile, there is a seated “astronaut” behind the wheel.
The gross margin from the Shanghai facility is already approaching the level of the Tesla U.S. made
Model 3. In July, Model 3 has become the bestseller in electric vehicles in China.
In the first quarter, Tesla started to deliver Model Y to its customers significantly ahead of the schedule.
Model Y was the first Tesla product which was profitable in its first quarter. In June, the company
confirmed that she had delivered more than 90,000 vehicles for the second quarter. Alyssa Altman,
transportation, and mobility lead with Publicis Sapient say that the second-quarter numbers were very strong. This shows to the market how Tesla is moving very fast. This is because they are making quick decisions and are not afraid of failure. Every profit shows resilience in uncertain times.