Tesla is the most popular brand that manufactures fully electronic vehicles. However, except for vehicles, Tesla Motors also works on energy generation and storage systems, which helps this company to remain one of the leading car manufacturers in the world. Such popularity and status are often considered to be the reasons why DotBig LTD clients invest in this stock.
However, we need to consider other circumstances as well. Experienced investors also study the performance of the company, examine the new trends boosted by it, and estimate its revenue and price rates movement. Here is what our experts found out on these matters.
Tesla Motors Inc. retains the leading position in the auto manufacturing industry in terms of market capitalization. Currently, the market cap of the company exceeds $687 billion. This is a great indicator of the company’s growth because Tesla isn’t even included in the top of the car selling companies that sold the biggest quantities of vehicles.
Tesla shows good performance in terms of yearly revenues. It managed to increase its annual earnings from $31.5 billion in 2020 up to $53.8 billion in 2021. The reason for this is that the company sells not only vehicles, but also other popular services.
Despite the good financial performance of Tesla, the TSLA stock from $1,000 to $663 per share over the passing month. Even though, the current price rate is 12% higher than the year before.
Some experts of the DotBig company forecast that if Tesla Motors manages to enter new markets successfully before 2025th, its stock might increase up to $3,000 per share. However, this is the most optimistic prediction. In reality, Tesla holds a 13% share of the EV market and the competition is increasing from year to year.
- On the 18th of May 2022, the stocks of the company dropped by 5.2% after the release of a new report by Piper Sandler. The analysis stated that Tesla will be probably forced to reduce the number of vehicles planned to be manufactured in China due to the new restrictions related to the recent wave of coronavirus disease in the country.
- On April 25th, the CEO of Tesla Motors, Elon Musk, bought Twitter. When comparing today’s price rates to the costs of that date, we will see that the stock has dropped by 35%. This happened because Elon Musk sold his $8.5 billion-worth share in Tesla to buy Twitter.
- A 13% crash happened in January 2019 after Musk posted his publication on Twitter that Tesla had to cut down the number of full-time employees. This slump in January was the seventh-biggest daily crash since the company has been listed publicly in 2010.
- On September 28, 2018, Tesla stock has decreased by almost 14% in a single day after the announcement that the Securities and Exchange Commission has sued Elon Musk.
As we can see, the activity of the company’s CEO has a great impact on the price rates of Tesla. That is why, if you invest money in this asset, you have to follow the news about the richest man in the world and the things he posts on his Twitter.
Trading Conditions with DotBig
This is a very popular company, that’s why many brokerage services offer their clients to trade their assets via them. However, DotBig.com is one of the best companies for investing in Tesla stock.
Foremost, the DotBig forex broker doesn’t charge trading commissions from clients. Fees are included in spreads. Then, DotBig has a very user-friendly trading platform for beginners. With it and its quote system, newbies can easily follow the rate movements and react to them quickly.
If you trade stocks on DotBig wisely, you will benefit easily because the conditions are very customer-oriented. Additionally, it’s easy to withdraw all the profits. When using alternative payment methods or credit cards, clients can get their money almost instantly.
Pros & Cons
- Tesla is the biggest manufacturer of electronic vehicles, and green energy is the growing trend today;
- Tesla has much better growth prospects than its competitors in the automating market;
- Elon Musk, the CEO of Tesla, is a very impulsive person whose actions might positively impact financial markets and the image of the company;
- Additionally, he makes one of the biggest contributions to the development of the space exploration sector;
- Tesla works on a broader set of services than just car manufacturing.
- Elon Musk is too unpredictable;
- The market has great expectations for the company, which might not be fulfilled due to different reasons;
The risks of investing in Tesla are high, and the costs of stocks might discourage beginning investors. However, if you believe in the good prospects of green energy in the future, TSLA stock might be a worthy investment to make today.