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Investago | Is there an optimistic future ahead for Tesla?
Time to read: 2 minutes
Is there an optimistic future ahead for Tesla?

Tesla shares have recently been put under considerable pressure. Adverse market conditions and an ageing product line complicate matters for companies. Over the past three months, the value of shares has fallen by about 35%. *

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Performance of Tesla, Inc. in 5 years. Source: tradingview.com

 

This fact is probably one of the main reasons why Tesla's top management has taken measures that could help the company perform better.

 

The expansion of production is and will continue to be one of the main drivers of the upward trend in the share price. Tesla recently announced on Twitter that it plans to expand battery and truck production to include a $3.6 billion plant in Nevada. The new plants should also include 100GWh battery cell factories and produce up to 2 million vehicles per year. The next factory Tesla plans to build is to focus on its new electric truck, the Tesla Semi. Up to 3,000 jobs should be created at these two plants.

 

On the other hand, there are concerns about Elon Musk. Recently, Elon went to court over his 2018 Twitter claim that he would take over the production of electric cars, which meant he expected strong financial support. But the catch was that he did not enter into any contractual obligations with potential investors. Elon Musk's output directly affects the course of stocks, and this is what sometimes worries investors.

 

Tesla's shares fell by more than half last year, but there is expected to be a chance for growth. After the full expansion of the product line with the Tesla Semi and Cybertruck, this hope could be fulfilled. This year, EPS could be a comfortable 40%, and the company's revenue could grow by the same percentage, and thus it should appear somewhere around $ 120 billion.

 

 

* Past performance is no guarantee of future results.

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