{"id":6852,"date":"2023-09-01T13:36:39","date_gmt":"2023-09-01T08:06:39","guid":{"rendered":"https:\/\/appreciatewealth.com\/blog\/?post_type=the_big_bucks_show__&p=6852"},"modified":"2024-11-20T11:01:02","modified_gmt":"2024-11-20T05:31:02","slug":"things-to-know-before-you-invest-in-tesla","status":"publish","type":"the_big_bucks_show__","link":"https:\/\/appreciatewealth.com\/blog\/the-big-bucks-show\/things-to-know-before-you-invest-in-tesla","title":{"rendered":"Things to know before you invest in Tesla!"},"content":{"rendered":"\n

Tesla is an electric and clean-energy vehicle manufacturing company headquartered in Texas in the United States. At present, it leads the global auto industry in terms of market cap, with a whopping valuation of around $777 billion, which is more than three times the market cap of the second biggest automaker, Toyota.  Tesla has sold a total of around 4.5 million electric vehicles so far. <\/p>\n\n\n\n

Tesla is named after the prodigious inventor Nikola Tesla, and was founded by Marc Tarpenning and Martin Eberhard in 2003. Later in 2004, Elon Musk acquired a large stake in the company for $6.5 million. The company\u2019s first car, the Roadster, was launched in 2009.Apart from EVs (electric vehicles), Tesla also manufactures batteries, solar roof tiles, solar panels, etc. Its subsidiary Tesla Energy is the largest developer and installer of photovoltaic systems in the US. <\/p>\n\n\n\n

Given India\u2019s high import duties on cars, owning a Tesla might currently be too expensive for most Indians, but you can definitely own a piece of the company to capture a tidy yield on your investment. Let\u2019s carry out a strategic analysis of Tesla to get a clearer picture of its investment potential. <\/p>\n\n\n\n

How much is Tesla worth? <\/strong><\/p>\n\n\n\n

Let\u2019s start by taking a look at Tesla\u2019s financials.<\/p>\n\n\n\n

(Amounts in billions of USD)<\/p>\n\n\n\n

 <\/td>Q2 2023<\/td>Q1 2023<\/td>Q4 2022<\/td>Q3 2022<\/td>Q2 2022<\/td>Q1 2022<\/td><\/tr>
Revenue<\/td>$24.9<\/td>$23.3<\/td>$24.3<\/td>$21.4<\/td>$16.9<\/td>$18.7<\/td><\/tr>
YoY quarterly revenue growth<\/td>47.2%<\/td>24.38%<\/td>37.24%<\/td>55.95%<\/td>41.61%<\/td>80.54%<\/td><\/tr>
Operating margin<\/td>13.46%<\/td>14.78%<\/td>16.76%<\/td>16.52%<\/td>15.91%<\/td>15.33%<\/td><\/tr>
Net margin<\/td>13.01%<\/td>13.70%<\/td>15.45%<\/td>14.95%<\/td>14.17%<\/td>13.51%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

 <\/p>\n\n\n\n

Thus, over the past year, Tesla has maintained a consistent net margin of between 13% and 16%. Its YoY quarterly revenue growth numbers are also quite good.. <\/p>\n\n\n\n

Where does Tesla\u2019s revenues come from?<\/strong><\/p>\n\n\n\n

Tesla earns revenue through several segments, of which automotive sales and services are the biggest. Look at the table below to get a better understanding of Tesla\u2019s revenue breakdown.<\/p>\n\n\n\n

Business Segment<\/strong><\/td>Revenue Contribution in dollars <\/strong>(2022)<\/strong><\/td>Revenue Contribution in %<\/strong><\/td><\/tr>
Automotive Sales<\/strong><\/td>$67.21B<\/td>83%<\/td><\/tr>
Services<\/strong><\/td>$6B<\/td>7%<\/td><\/tr>
Energy generation and storage<\/strong><\/td>$3.9B<\/td>5%<\/td><\/tr>
Leasing<\/strong><\/td>$2.47B<\/td>3%<\/td><\/tr>
Regulatory Credits<\/strong><\/td>$1.77B<\/td>2%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

 <\/p>\n\n\n\n

Stock performance of Tesla<\/strong><\/p>\n\n\n\n

Tesla has performed remarkably well in recent years, with its share price jumping up by more than 700% in 2020! Before investing, it is always a good idea to analyse a company\u2019s past market performance to gauge how the market perceives the stock. Let\u2019s take a look at Tesla\u2019s stock performance over the last few years.  <\/p>\n\n\n\n

Year<\/strong><\/td>Average Share Price<\/strong><\/td>Year High<\/strong><\/td>Year Low <\/strong><\/td>Yearly Change<\/strong><\/td><\/tr>
2023<\/td>$205.4<\/td>$293.3<\/td>$108.1<\/td>98.90%<\/td><\/tr>
2022<\/td>$263.1<\/td>$400.0<\/td>$109.1<\/td>-65.03%<\/td><\/tr>
2021 <\/td>$260.0<\/td>$410.0<\/td>$187.7<\/td>49.76%<\/td><\/tr>
2020<\/td>$96.7<\/td>$235.2<\/td>$24.1<\/td>743.44%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

With a growth of nearly 100% so far this year, Tesla certainly looks like a great stock to invest in.<\/p>\n\n\n\n

Who has stakes in Tesla?<\/strong><\/p>\n\n\n\n

Elon Musk currently owns a 12.95% stake in Tesla. <\/p>\n\n\n\n

Apart from Elon Musk, the following institutional investors also hold significant stakes in Tesla.<\/p>\n\n\n\n