Commencing this decade US automaker “Tesla” appears to have the correct ingredients to become a Bull.
Starting this decade Tesla reached the milestone that might just turn the fate of this furious company. It became the most valued US Automaker and touched its all-time high share price of $ 537.92 (Yahoo Finance). This made Elon Musk-led Automaker’s market value of nearly $88.71B at Thursday’s close.
(Image: Apple Stock)
Surpassing the previous record-holder Ford at $80.8 Billion in 1999. Ford (NYSE: F:$9.25) had the market value of nearly $36.80B at Thursdays close.
(Image: Apple Stock)
But isn’t the overnight victory that Elon is experiencing. Last year was a disaster due to copious reasons. Marijuana that he smoked on Joe Rogan’s Podcast which SEC thinks wasn’t cool. The famous defamation case in which musk said Pedo Guy to Vernon Unsworth. How can we forget the cherry on top? The tweet regarding he wanted to take Tesla private, at $420 for which he had secured funding for which both company. This resulted in Musk and Tesla both paying $20M each and he has to leave the chairmanship for 3 years and his tweets will be monitored. Due to all this Tesla’s stock price was just dropped dead to its 52 weeks low of just $178.97 on 2 June 2019.
Now all this is in the past.
Today company had touched new highs and created the record of most valued publicly traded us automaker
The stock price boosted on these landmark occasions
FY 2019-20 Q3
Elon Musk Tweeted that
“Tesla Q3 results:
– Shanghai Giga ahead of schedule
– Model Y ahead of schedule
– Solar installs +48% from Q2
– GAAP profitable
– Positive free cash flow”
And due to this tweet, the stock price skyrocketed nearly $50 in just a couple of trading days from $256 to $328.
Launch of CyberTruck
Cyber tuck is the new pick up truck which Tesla had launched on 21 November 2019 at its facility in California. And within three days of staring pre-order musk had already got the order for 187,000 trucks. And these numbers and important because musk has the tendency of delay in delivering the vehicle to the owners but in due to these numbers the investors felt like they can invest in the company as many people should the support for the product as it had many flows and it wasn’t even street legal at the time of launch and the failure of the Tesla armored glasses on the window of the truck.
Development In China
Gigafactory 3 in Shanghai become one of the key reasons for the success of Tesla’s sparkling success. Because it has started production before the estimated time. And its already started delivering the vehicles.
The factory is 864,885 m2 (9,300,000 sq ft) big and it’s going to manufacture model 3 and model y for the Chinese market which is the biggest market for Tesla. It took Tesla just 168 working days to go from permits to a finished plant.
This might also be the reason why Tesla got a huge loan of CNY 10 billion from Chinese bank(China Construction Bank (CCB), Agricultural Bank of China (AgBank), Industrial and Commercial Bank of China (ICBC) and Shanghai Pudong Development Bank (SPDB) are among the banks which have agreed to give Tesla the financial support)
This plant is fully owned by Tesla and its the first company that the Chinese government has allowed doing so.
This becomes a key reason for the boost of the company due to the trade war between China and the USA in which Tesla was hurting bad.
Developments for the European market
Elon Musk is now planning to go to Europe and tap those market and he is planning to do that by simply inaugurating one more factory Gigafactory 4 in Grünheide (Mark), Germany which can also be acknowledged as Mecca of automakers. Musk has already got the land and the construction has already begun. The company has pledged to plant the number of trees they cut while making that factory.
Entry into the Indian market
India is a very price-sensitive market. To make it big you have to be the bank for the buck. Because people tend to compare everything then they buy the product. During an interview, musk said that he is planning to come to India soon as the government gives them all the requirements. And he said hopefully by end of the year 2019 or by 2020. Let’s see how this plays out.
These are the list of landmark which are to be kept in mind while. Investing in Tesla.
Word of advice:
If you already own a Tesla stock then hold on for a long haul because this is a new age APPL. Which has just started to grow and soon it’s going to bring you a huge pile of cash. As people are now turning more towards renewable sources of fuel and Tesla has got the upper hand due to its first mover’s advantage. This is a clear example of the monopoly market as there is no close competition. Even the German automakers like BMW or Mercedes can’t break the barriers created by Elon Musk.