Investago | logo
Investago
Investago
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%. *

tesla investago

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.

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Investago
Test your knowledge
Are you curious about your trading level? Now it's time for you to take this trading quiz questions. In the quiz you will find a few questions which are designed that you will have a better understanding of trading after. We wish you best luck!
Related news
Investago
12. May 2024
Carnival's Surge: Temporary Tide or Turning Point

Once a top-performing stock, Carnival Corp (NYSE: CCL) has experienced a significant downturn, currently trading 80% below its peak in January 2018 despite a recent 76% surge in shares since the start of...

Read more
Investago
10. May 2024
Starbucks Struggles Amid Market Challenges

Starbucks shares tumbled nearly 16% following a disappointing fiscal second-quarter earnings report, with the stock down about 35% over the past year.* The coffee giant faced challenges in its two largest...

Read more
Investago
10. April 2024
The Industrial Giant's Crossroads: 3M's Dividend Dilemma

3M, renowned for its 5.7% dividend yield and a 65-year streak of payout increases, represents a beacon of stability and innovation in the industrial sector. Tracing its roots back to 1902, 3M's journey fr...

Read more
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.