At the end of the first week of 2020, the Tesla stock price was around the US $90 but now it is zoomed to more than $ 730. That’s little more than eight times gain. Well, what makes Tesla stock so attractive. Well, there are many factors behind this. The first one is the company targeted to make sales of around half a million car last year. Most importantly, the company almost attained what it targeted. In the fourth quarter only, the electric car maker company produced nearly one-fifth of a million cars.
One of the best electric car maker companies was just close to survival in the past. But from that point, the sales numbers were the key behind the more than eight times jump in the share price. But according to many investors, the growth prospect of a company is the main key. Tesla’s business model can generate recurring revenue from mobile services faster and more lucrative than its competitors. It’s hard to find more innovative companies, especially in the electric and self-driving car markets.
They argued that the total number of car production is still modest compared to other companies. These investors are hoping that the company will improve its sales in near future way more.
The prospect of Tesla stock price
The year-over-year delivery growth of the company is a little more than 60%. Moreover, the production data shows the company can do better in the fourth quarter. As TSLA’s next earnings release approaches, investors are hoping to draw strength from TSLA. The company’s earnings per share are expected to be little more than the US $ 0.80. Hence, this is an increase of a little more than 90% from the same period last year.
Moreover, many market researchers viewed that by the end of the third decade the company will produce 25 times more cars. For this reason, these market researchers think you are still getting the stock at a discount price. They also viewed that the company can cross the $ 800 mark in some months. At present, the company can generate quarterly revenue of more than US $ 9 billion. This is an increase of nearly 34.3% on yearly basis.
It should be noted you should also pay attention to the latest changes in the analyst of the share price of the company. Recent revisions from market researchers tend to reflect the latest short-term Tesla Stock Price only. We are optimists for good signs of the business prospects of the company but are a little cautious as the company is known for over experiment. You can get more information like balance sheet at https://www.webull.com/balance-sheet/nasdaq-tsla.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.