Recently, interest has been growing around Tesla. The company reports interesting results. Analysts estimate the quarterly report will show figures of $ 5 billion in revenue and a 19 cents loss per share. Despite the fact that in 2020 the company multiplied its value four times, opinions regarding the purchase or sale are divided equally.
The previous quarter of this year may arouse curiosity. The time abundant in the breakdown of indicators on the market turned out to be quite kind for Tesla.
“After the close of the session on Wall Street, Tesla gained another 4.06 percent. During regular listing, the increase was 1.53%. Including post-session trading, Tesla's stock is currently valued at $ 1,657. That's 295 percent. more than at the beginning of 2020 ”.
Pessimistic vision of the future
Tesla is currently trading at $ 2,014.20 per share. Some analysts are pessimistic about the price increase. It is rumored to drop to $ 87 per share by the end of 2021. So says Gordon Johnson, president and founder of GLJ Research.
Sale of cars
The problem is that sales of Tesla cars are extremely low compared to other companies. Last year, the company sold 370,000 cars, and this year it plans to sell 500,000 cars. By comparison, Volkswagen had sales of 11 million cars.
"The problem is that all of these car companies are now selling electric cars, and Tesla is predicting that their loan revenues will fall by 50% in the second half of this year ... their main business is loss making."
Unfortunately, Tesla has a production surplus compared to how many cars are actually sold. As a result, the company has to introduce discounts on cars to encourage the customer to buy.
“To date, the stock has risen by around 385%. As announced last month, on August 31 this year. the shares will start trading on a split-adjusted basis ”. This means it will be a higher level of dispersion of the action. For example, instead of one share for $ 2,000, you will be able to buy 4 for $ 500. This may positively affect the demand among individual investors.
To sum up, on the one hand, we have a huge potential of a technology company, and on the other hand, we have uninteresting car sales results. What can the future hold? Well ... It is known that the demand for cars has decreased significantly due to the coronavirus. If it managed to survive in the crisis with cars with high-end cars, then when the market starts to rebound, it has the right to record good results.
Tesla is a company that is truly obsessed with growth powered by Elon Musk's charisma. Sometimes it is chaotic, but in the end it turns out that the technological giant is starting to catch up with the global hegemons of the market.