Tesla Motors made its stock market debut in 2010 at about $22 per share. The IPO was a success for Tesla, but the stock price has really skyrocketed over the past year. Before we dive deeper into history, let’s take a step back to review the company. Tesla is an American automotive and energy storage company founded in 2003 specializing in electric cars and their components. Tesla’s first vehicle, the Roadster, was the first electric sports car on the production market to travel more than 250 miles on a single charge.
When you invest in Tesla, you invest in a company that is at the forefront of the electric vehicle industry. And it’s already captured the imagination of the public and the electric vehicle market, but there are some things you should know before investing your money. Understand the risks, understand what Tesla has to offer you, consider your investment schedule, what you can lose, and take a look at the inventory.
Tesla, Tesla’s Journey from IPO to Record High
Tesla’s journey from an initial public offering to a stock market record has been an exciting one for its investors. The most difficult decision to launch a new vehicle, the Model 3, caused an additional influx of interest and raised concerns about increasing its production.
Electric cars have a future in the market, but it is hard to assume that the Model S will be around for long. That is because of its price, currently from $75,000 to $90,000.
One of the reasons it’s so expensive is that it requires Tesla to do costly upgrades and technologies. The technology needed to achieve full range is not that of the Model S. Instead, Tesla had focused on a much cheaper version called the Model 3. You can get a Model 3 with the battery needed for a full day of driving for about $35,000. The Tesla Model 3 is not standalone, but it is much cheaper than the Model S. If the company’s production is booming, Tesla can significantly reduce the price of electric vehicles.
Stock market
Tesla, like all companies, has risks. The company has massive competition in the electric vehicle market and it has to outperform all established companies in the EV industry such as Ford (NYSE: F), General Motors (NYSE: GM), Fiat Chrysler Automobiles (NYSE: FCAU), Volkswagen (OTCPK: VLKAY) before it can become truly dominant. These companies have several advantages. They have manufacturing experience and more experience in the market, for instance.
Tesla has the potential to change the world, and many investors are betting it does. What do you get for investing in an automaker? A little short-term advantage, but a long-term advantage. Musk is simply brilliant, and his “master plan” has many components. All of them will likely happen, but no one can be sure of the timing of each step. The company still has a lot of competition, but the odds are in its favor. Tesla is not only making the electric vehicle possible but also offering a service that people love. When they order a car, they don’t care if it’s a Model S or a Chevy Bolt, but they worry that it gets them where they want to go.
Tesla’s Share Price
When the company went public, its shares were listed on the NASDAQ stock exchange, but they weren’t very liquid because there weren’t many shares. During the first trading day, Tesla’s share price was set at $22 per share. However, Tesla shares opened higher to $25 and continued to rise. They hit an all-time high of $880.08 on Jan 08, 2021. However, the meteoric rise was somewhat tarnished when it reported a quarter with an operating loss for the first time in eight months. In the second quarter of 2018, it reported an operating loss of $675 million. The company expects to report an operating loss of $3 billion to $3.5 billion for the full year. Still, Tesla shares ended the week at $299.53, up 7.29%.
Latest news from Tesla
In March 2017, the Tesla Model S became the fastest and most powerful car ever made. The company has made some significant changes to the second-generation Model S, Model 3, which will be available this summer. The company built its reputation on producing a high-quality product made in the United States. Tesla also offers energy storage products that combine batteries and electrical power systems that can be used for backup power, renewable energy generation, and more. To speed up the company’s production, Tesla bought the Grohmann Engineering Group, a German engineering company, in 2016, which builds advanced automation systems for manufacturing facilities.
When you invest in Tesla, you are investing in a company that has the chance to do great things for years to come. By 2020, Tesla wanted to have 500,000 cars on the road. By 2025, Tesla wants to sell one million vehicles a year. For Tesla to achieve these goals, it will have to create cars at such a fast pace that it will dilute its share price. As a result, you should consider your investment schedule before investing. To put that into perspective, Tesla shares currently have a market capitalization of nearly $594.91B and are trading at $618.28 at press time.
Conclusion
With a market capitalization of $594.91B, the company is currently the world’s most valuable car business in terms of market cap. The company also has one of the most valued multiples in the market.
Tesla is not the only company that has the potential to become a global giant in the future. However, it is believed to be an excellent example of a company that can be very successful and profitable, regardless of the economy. Investors should consider Tesla a long-term investment as it is a fantastic company with a tremendous future ahead that can change the world.
