Is Tesla A Buy?
@koolgal：
🌟🌟🌟$Tesla Motors(TSLA)$ Tesla's share price dropped 5% on Friday after it cut prices on some models in the US and reduced its premium driver assistance software. However its share price is still up 126% year todate. Tesla has cut the US price of its full self driving (FSD) driver assistant software by 20% to USD 12,000 from USD 15,000 in the US and by CAD 3,500 in Canada from USD 19,500 to USD 16,000. Tesla has also just launched a new Model 3 sedan in China. This is the 1st time Tesla has rolled out a vehicle in China ahead of the US. This vehicle is being built at Tesla's Shanghai Giga Factory and has a starting price which is 12% higher than the previous older model. In raising the price on Model 3, Tesla's top selling model is good for Tesla's profit margins. However Tesla has recently cut prices for its premium Model S and Model X by 14% to 21% in China and the US. This price cut has started a price war that shows how intense the competition is among the EV car companies. Tesla's share price has been rather volatile. At its peak in 2021, it was valued at more than USD 1.2 Trillion and even the combined market capitalisation of the world's biggest automakers is not even close to that figure. Even now Tesla has a market capitalisation of USD 767 billion. If you had bought Tesla when it first IPO in 2010 at USD 17 per share and held it till now, it would have been a huge windfall. One of Tesla's biggest fan is Cathie Wood who predicts that Tesla share price will rise to USD 2000 per share by 2027. Much of the downward movement in Tesla's shares this year is due to its vehicle pricing strategy. This has resulted in Tesla 's operating margin falling to 9.6% in 2Q 2023 compared to 14.6% the previous year. However net income grew 20% year over year due to its sales that jumped 47%. Elon Musk, Tesla' s CEO has said that he favours growth in sales volume over pricing for now. He believes that this strategy will pay off in the future when highly profitable options including Autonomous Driving Software are more popular. Another catalyst to growth for Tesla is its Energy business. This segment has already generated more than USD 1.5 billion in revenue in 2Q 2023. Then there is the Cybertruck roll out too. Tesla's Supercharger Network is yet another revenue stream. Tesla has been signing deals with a growing number of EV makers to open up its supercharging network to non Tesla vehicles. This would possibly deliver USD 10 billion to USD 20 billion in annual revenues by 2030. Then there is also Tesla Bot project known as Optimus in the pipeline too. I am Bearish on Tesla in the short term but Bullish in the long term as I believe it has exponential growth ahead. Its share price can catapult to USD 300 and beyond. However patience and time in the market are required to allow Tesla to reach its full potential. @Daily_Discussion @TigerStars @CaptainTiger @MillionaireTiger @Tiger_comments @Tiger_Earnings @Trend_Radar
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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