Tesla Review and Analysis
Overview
The Tesla stock is without a doubt one of the hottest and most sought-after share in the market as it scored an impressive increase of 695% in 2020. Though this was followed by a pullback for the price of the car manufacturer in early 2021, this is perhaps exactly the opportunity for interested buyers to delve in, especially since, despite the pandemic, the company has achieved 5 consecutive profitable quarters, while it is planning to increase its deliveries by 50% and expect an equal hike in their annual growth.
By the end of the guide, you should know the following:
- A brief history of Tesla.
- Tesla stocks' historical performance.
- If Tesla stocks is a good or a bad investment.
- How to buy Tesla stocks.
- Where to buy Tesla stocks.
- Tesla stock price prediction: Where Will Tesla stock Be in the next few Years?
Fundamentals
As Tesla is the global leader and the top pioneer in electric vehicles, leaving its competitors trailing behind and trying to catch up, while it has recently also invested big in cryptocurrencies and especially Bitcoin in a move that meant a return of 80% in only 2 months. Moreover, following a five-for-one stock split in late 2020, Tesla shares are now more affordable than ever for everyday investors.
Pros and Cons of Buying Tesla stock investment
Tesla Pros and Cons
| Benefits |
Risks |
| Production Ramp-Up. |
SEC Probe. |
| Improving Fundamentals. |
Losing Money? |
| A History of Defying the Odds. |
Safety Concerns. |
The Benefits of Tesla stocks investment
Since Tesla’s stock price often experiences high volatility, this allows investors to be able to have a chance to grab their share without blowing away all their funds, and having such an opportunity is clearly seen as an advantage by many.
Another pro for Tesla is Elon Musk’s personal success, since his net worth was increased by more than $140 billion, largely due to a 650% rise in TSLA stock.
Since Ford way back in 1956, Tesla is the first automobile company to go public and its market capitalization is bigger than that of General Motors and Ford combined, which is testament to its size and dominance. Moreover, Tesla is a true pioneer and champion of innovation, always at the cutting edge of technology, ranging from self-driving cars to home solutions that promote sustainability and energy efficiency.
A final strong point is the resilience shown by Tesla during the pandemic, despite of which it managed to manufacture and deliver a record number of electrical vehicles, although the world was hit by economic recession. In addition, and thanks to a new manufacturing plant in Shanghai China, Tesla’s future prospects in terms of output seem positive and promising.
Things we didn't like in Tesla stocks investment
The fact that Tesla stocks do not pay dividends to investors might put off many from investing in this particular stock. Moreover, the great volatility in stock value and its frequent fluctuations may lead many investors, especially those with very low risk tolerance to keep away. Perhaps the most problematic aspect of investing in Tesla however, is the eccentric and even often erratic behaviour of its CEO Elon Musk, who is often criticised both for his personal views expressed on social media, his personal life and his actions which directly impact the value of Tesla’s stock. To attempt to mitigate this problem, a supervising board has even been appointed to monitor Musk’s behavior.
Historical performance
At the time of its IPO in 2010, Tesla offered 13.3 million shares at $17 per share, while currently its shares are trading for more than $580 per share. As impressive as this ROI may appear the road so far has been bumpy and Tesla was under fire either for missing deadlines as a manufacturer, or for comments made by its controversial CEO Elon Musk, which often led many expert traders to criticise Tesla’s valuation and urge investors to short its stock.
This being said Tesla’s market capitalization of around $800 billion still earns it the title of the world's largest automaker by value. In fact, due to its dominance in the US market and pioneering the field of electric and low emission vehicles, Tesla’s capitalization is bigger than that of its 3 largest competitors combined, although they too have started launching their own environmentally friendly models.
Tesla's inclusion in the S&P 500 on December 21, 2020 was definitely the year’s highlight for the company, which earned its index inclusion following a 700% increase in its share price and the reporting of four consecutive profitable quarters.
Since then, Tesla went on to announce a total revenue growth of 46% year on year, while adjusted share earnings stood at 80 cents per share, shorter than the predictions of analysts, but still enough for Tesla to keep its six consecutive quarter in profit.
Tesla Stocks Future Price Forecast Predictions
Tesla shares Price Predictions
| Year |
Low |
High |
| 2021 |
$612.89 |
$680.67 |
| 2022 |
$701.15 |
$890.81 |
| 2025 |
$1,075.62 |
$1,103.11 |
* The prediction figures outline some of the Potential high and low of Tesla shares price prediction forecasts for the years 2021, 2022, and 2025 based on the data collected from various sources meant strictly for educational purposes only and not taken as investment advice.
Tesla Shares Price Prediction for the year 2021
By the end of the year 2021, using forecast and algorithmic analysis, our price prediction forecasts suggest that one Tesla share will reach an average price of $646.78, which will be an impressive 262% growth from it's current market price.
Tesla Shares Price Prediction for the year 2022
By the end of the year 2022, our price prediction forecasts suggest that one Tesla share will reach an average price of $795.98, which will be an impressive 322% growth from it's current market price.
Tesla Shares Price Prediction for the year 2025
By the end of the year 2025, our price prediction forecast suggests that one Tesla share will reach an average price of $1, which will be an impressive 0% growth from it's current market price.
Where Can You Buy Tesla stocks
There are several online sites and platforms where people from across the globe can buy Tesla at good exchange rates and with low or no transaction fees.
To aid your quest we have comprised a list of some of the most popular methods and platforms to buy Tesla from and your strongly advised to consult this list before making your first purchase of or investment in Tesla.
