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What Makes Tesla's Business Model Different?: TSLA (Electric Car Company)

Tesla is an American electric vehicle and clean energy company founded in 2003. It launched its IPO in 2010 and has since expanded its product line to include electric SUVs and trucks. Tesla's mission is to accelerate the world's transition to sustainable energy through electric vehicles and renewable energy products. The company has seen rapid growth and now has multiple vehicle manufacturing plants around the world. While Tesla's stock price has increased dramatically in recent years, its high valuation and risks of manufacturing at scale raise questions for investors.

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0% found this document useful (0 votes)
91 views4 pages

What Makes Tesla's Business Model Different?: TSLA (Electric Car Company)

Tesla is an American electric vehicle and clean energy company founded in 2003. It launched its IPO in 2010 and has since expanded its product line to include electric SUVs and trucks. Tesla's mission is to accelerate the world's transition to sustainable energy through electric vehicles and renewable energy products. The company has seen rapid growth and now has multiple vehicle manufacturing plants around the world. While Tesla's stock price has increased dramatically in recent years, its high valuation and risks of manufacturing at scale raise questions for investors.

Uploaded by

Mirza Usman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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TSLA (Electric Car Company)

Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto founded in 1july
2003 by Martin Eberhard and Marc Tarpenning and is headquartered in Palo Alto, California. On June 29
2010 tesla launched its initial public offering on Nasdaq.
In 2015, Tesla expanded its product line with Model X, the safest, quickest and most capable sport utility
vehicle in history that holds 5-star safety ratings across every category from the National Highway Traffic
Safety Administration. Completing CEO Elon Musk’s ―Secret Master Plan,‖ in 2016, Tesla
introduced Model 3, a low-priced, high-volume electric vehicle that began production in 2017. To create
an entire sustainable energy ecosystem, Tesla also manufactures a unique set of energy
solutions, Powerwall, Powerpack and Solar Roof, enabling homeowners, businesses, and utilities to
manage renewable energy generation, storage, and consumption.
And this is just the beginning. With Tesla building its most affordable car yet, Tesla continues to make
products accessible and affordable to more and more people, ultimately accelerating the advent of clean
transport and clean energy production. Electric cars, batteries, and renewable energy generation and
storage already exist independently, but when combined, they become even more powerful – that’s the
future we want.

Mission
Tesla's mission is to accelerate the world's transition to sustainable energy. Today, Tesla builds not
only all-electric vehicles but also infinitely scalable clean energy generation and storage products. Tesla
believes the faster the world stops relying on fossil fuels and moves towards a zero-emission future, the
better.

What Makes Tesla's Business Model


Different?
The market for fully electric vehicles is growing. The reasons are many, including new
regulations on safety and vehicle emissions, technological advances, and shifting customer
expectations. But much of the mainstream acceptance and excitement for electric cars can be
attributed to Tesla Motors Inc. (TSLA) and its unique business model.

Tesla founder and CEO Elon Musk launched the company with the mission, ―to accelerate
the advent of sustainable transport by bringing compelling mass-market electric cars to
market as soon as possible.This mission is the backbone of Tesla’s for homes and businesses

What it can do for investors?


Tesla tapped the brakes this week after its record-breaking rally.

The stock closed 4% lower for the week, pulling back further from a record high on Jan. 25.
Shares are down more than 13% from that peak. It remains up 1,000% since a March low.
Those gains pushed its valuation to 1,223 times trailing earnings.
During the course of 2020, TSLA shares rose nearly 700%. But with this big run-up followed
by an earnings miss, many investors might be wondering. The ride for shareholders seems to
be smoothing out as the company meets quarter after quarter of profitability. That said,
investors can't ignore Tesla's off-the-charts valuation multiples. And though the company
reported $31.5 billion in total revenue for 2020, its current market cap is nearly $800 billion.

TSLA has grown into the largest car company in the world and now sits comfortably atop the
industry. If things continue to go Tesla's way that's not likely to change anytime soon, and if
history is any guide, betting against Musk tends to be a bad call. If you're looking to buy
Tesla stock now that shares are much more affordable — or you simply have an admiration
for electric cars or Elon Musk, Tesla's mercurial CEO — here's what you should consider
first

 Company fundamentals
 Your current investment portfolio
 How much you should invest in TSLA

Who invested in TSLA?


Institutional investors purchased a net $37.7 million shares of TSLA during the quarter ended
June 2019, and now own 45.67% of the total float, a percentage that is typical for companies
in the Motor Vehicles industry. The big institution involved in TSLA shares are

 The Vanguard Group, Inc.


 Capital Research & Management
 BlackRock Fund Advisors
 SSgA Funds Management, Inc.
 Fidelity Management & Research Co..
 Jennison Associates LLC
 Geode Capital Management LLC
 Northern Trust Investments, Inc.
 Norges Bank Investment Management

Stock Analysis:-
Tesla elon musk has built this company into one of the biggest business in the world. Its also
fair to say it’s most popular stock in the entire stock market now problem with tesla is we are
not getting deep fundamental research on the stock all we see is short term news short term
results and surface level analysis. Tesla stock is cooling off after delivering fourth-quarter
results after the close on Jan. 27 that missed earnings estimates. But it sees 2021 delivery
growth accelerating from 2020's pace and confirmed new Model S and X versions are
coming. Tesla sees 50% average annual growth in vehicle deliveries, with 2021 expected to
be faster than that pace. In 2020, deliveries grew 36% to 499,647. However, while speaking
to Wall Street analysts on a conference call after the report, Musk also suggested the timeline
for its Cybertruck had slipped a bit and said Tesla is going to make electric vans at some
point. The company reported adjusted earnings of 80 cents per share, missing estimates of 90
cents. Still, earnings leapt 95% from the year-ago period and was its sixth straight quarter of
profitability. Revenue jumped 46% to $10.74 billion, topping estimates of $10.1 billion.
Tesla's Massive Expansion
Tesla has undertaken a massive expansion of manufacturing. Musk wants to eventually build
20 million electric vehicles a year over the next decade — more than double the current
production of other auto-making giants — so it's now on a mission to rapidly expand its
manufacturing capabilities.

Tesla took a big step with its third manufacturing plant, where construction is now underway
near Berlin. That plant is expected to be completed in March 2021, where it will produce the
Model Y.

Then in July, Musk confirmed that its fourth manufacturing plant would be built near Austin,
Texas. That factory will be Tesla's largest, built on a 2,000-acre chunk of land. It will
produce the Cybertruck and its big-rig truck called Semi, as well as the Model Y and Model
3. Tesla recently said Cybertruck deliveries won't begin until early 2022, later than official
targets for a late 2021 launch.

"We ramped Model 3 in China to over 5,000 cars per week and started production of Model
Y," Tesla said. "While 2020 was a critical year for Tesla, we believe that 2021 will be even
more important. And as Tesla expands manufacturing capacity in Shanghai to begin
producing the Model Y crossover, it also recently raised roughly $5 billion in its third stock
offering of the year. Tesla's locally made Model 3 sedan was the second-best-selling electric
car in China last month.

Tesla Stock Gets High Composite Rating

The IBD Stock Check up tool also provides a Tesla stock forecast. It shows that Tesla stock
has a hearty IBD Composite Rating of 97 out of 99. The rating means Tesla stock currently
outperforms 97% of all stocks in terms of the most important fundamental and technical
stock-picking criteria.

The stock also has a Relative Strength Rating of 96. The rating tracks market leadership. It
shows how a stock's price movement over the last 52 weeks measures against that of other
stocks.

In addition, Tesla has an Accumulation/Distribution Rating of B-. That rating analyses price
and volume changes in a stock over the past 13 weeks of trading. Its current rating indicates
more funds are buying than selling. A grade of A signals heavy institutional buying. The
lowest rating of E means heavy selling. Think of the C grade as neutral. In the stock market,
timing is critical. So when you're looking for stocks to buy or sell, it's important to do the
fundamental and technical analysis that identifies lower-risk entry points that also offer solid
potential rewards.

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