Investing in Tesla Stock (TSLA) (2024)

Tesla Inc. (TSLA), the world's largest automaker by market value, designs, builds, and markets fully electric vehicles (EV) and energy generation and storage systems. The company also provides services through vehicle service centers, body shops, and charging stations. Tesla makes and sells mid-size sedans, full-size sedans, and compact and mid-size sports utility vehicles.

Tesla was founded in 2003 as Tesla Motors by Martin Eberhard and Marc Tarpenning. Elon Musk invested in the company and became its chair the next year. An out-of-court settlement of Eberhard's lawsuit against Musk after Eberhard's ouster as CEO allowed both men to call themselves co-founders, along with Tarpenning and early hires Ian Wright and J.B. Straubel. The company was founded as a maker of electric vehicles and related components and has subsequently expanded into energy generation and energy storage products. Tesla went public in an initial public offering (IPO) on June 29, 2010.

In 2021, Tesla moved its headquarters to Austin, Texas, from its longtime home in Palo Alto, Calif. Musk is Tesla's chief executive officer. Tesla's stock is grouped with the consumer discretionary sector for investing purposes. Tesla's main rivals include established automakers such as Ford Motor Co. (F) and General Motors Co. (GM), as well as newer, fast-growing electric vehicle makers like Lucid Group Inc. (LCID) and China-based NIO Inc. (NIO). In FY 2021, ended Dec. 31, 2021, Tesla posted net income of $5.6 billion on revenue of $53.8 billion.

Key Takeaways

  • Tesla designs, builds, and sells electric vehicles, as well as energy generation and storage systems.
  • Tesla's rivals include major automakers such as Ford Motor Co. (F) and General Motors Co. (GM), as well as rising electric vehicle makers like NIO Inc. (NIO).
  • In FY 2021, ended Dec. 31, 2021, Tesla posted net income of $5.6 billion on revenue of $53.8 billion.

Tesla's Recent Developments

  • As of Nov. 22, 2022, Elon Musk's net worth had fallen by $100 billion in 2022.
  • On Oct. 19, 2022, Tesla announced its Q3 2022 earnings. While EPS and car deliveries beat analysts' expectations, revenue failed to do so and Tesla's stock declined after the announcement.
  • On August 5, 2022, Tesla announced a 3-for-1 stock split, and began trading on a split-adjusted basis on August 25.

What's Happening With Tesla's Recalls?

Tesla has issued multiple vehicle recalls in recent months. On April 12, 2022 the company announced a recall of 594,894 vehicles, including models Y, X, and S made in 2020-2022 and Model 3's from 2017-2022, to disable the Boombox function when the car is not parked lest it drown out pedestrian warning signals. On Feb. 1, 2022, Tesla announced a recall of 817,143 vehicles, including 2021-2022 Model S and Model X, 2017-2022 Model 3, and 2020-2022 Model Y, because the audio reminder to buckle seat belts may not work as required.

What's Happening With Tesla's Cybertruck?

On Aug. 7, 2021, Tesla announced that its electric pickup truck, the Cybertruck, will not be released until 2022, after initially being scheduled to come out in late 2021. The truck has been hampered by design issues, and also by supply chain challenges related to the pandemic. On April 7, 2022, Musk said the Cybertruck would debut in 2023, and would be assembled at the company's recently opened plant in Austin, Texas.

What's Happening With Tesla and Bitcoin?

On May 12, 2021, Musk announced on Twitter that Tesla would stop accepting Bitcoin payments for its vehicles, citing concerns over "rapidly increasing use of fossil fuels" for Bitcoin mining and transactions. On June 13, 2021, Musk tweeted that Tesla would again accept Bitcoin when approximately 50% of its mining is done with clean energy. On July 21, 2021, Musk gave more detail at a conference regarding when Tesla will accept Bitcoin. The CEO said the company would "most likely" resume accepting Bitcoin, pending due diligence to confirm that the percentage of renewable energy used to make Bitcoins is "at or above 50%," and on an upward trend.

What's Happening With Tesla's Car Radar?

In May 2021, Tesla announced that it would no longer include radar sensors on its Model 3 and Model Y cars manufactured for sale in North America. The decision caused Consumer Reports to pull its “Top Safety Pick+” designation from the Model 3, and the National Highway Traffic Safety Administration (NHTSA) said that the radar-less vehicles will no longer get a check mark for a number of categories, including dynamic brake support. Consumer Reports and the Insurance Institute for Highway Safety (IIHS) restored their highest safety endorsements for Tesla Model 3s on June 29.

What's Happening With Elon Musk and the SEC?

In September 2018, Tesla and CEO Musk settled a civil securities fraud suit brought by the U.S. Securities and Exchange Commission (SEC). As part of the settlement, Musk stepped down as chair of the board and the company agreed to corporate governance reforms, other changes, and a total of $40 million in fines for Musk and the company. The SEC had alleged that a Twitter post by Musk outlining plans to take Tesla private "lacked an adequate basis in fact." The SEC also charged Tesla with "failing to have required disclosure controls and procedures relating to Musk’s tweets."

On June 1, 2021, The Wall Street Journal reported that Musk had twice violated a court order requiring that all his tweets be pre-approved by Tesla lawyers. On March 8, 2022, Musk sued to end the SEC settlement condition requiring company lawyers to approve his tweets containing material business information, alleging it infringes his freedom of expression. On April 14, 2022, Musk called SEC regulators "bastards" for bringing the charges settled in 2018.

What's Happening With the Tesla Shareholder Lawsuit About Solar City?

On July 12–13, 2021, Musk testified in a lawsuit brought by Tesla shareholders. The plaintiffs alleged that he used Tesla's 2016 acquisition of SolarCity to bail out SolarCity while chairing both companies’ boards. Closing arguments in the case took place in January 2022, with lawyers for the plaintiffs arguing Musk should return the Tesla shares he received for his SolarCity stock, valued as of January 2022 at $13 billion. A ruling in the case remained pending as of April 21, 2022.

FAQs

Has TSLA ever split its stock?

Tesla has split its stock twice. Effective Aug. 31, 2020 it executed a 5-for-1 split of common shares. It executed a 3-for-1 split of common shares effective on August 25, 2022.

Does TSLA pay a dividend?

No, it does not pay a dividend.

How many shares of TSLA stock are there?

Tesla had approximately 3.16 billion shares outstanding as of Oct. 18, 2022.

Who Is Tesla's CEO?

Tesla's CEO is Elon Musk. Musk made a significant early investment in the company the year after it was founded. Under his leadership, the company has grown from a money-losing startup into a profitable, large automaker and a global leader in electric vehicles. He was chair of the company's board until resigning as part of a settlement with the SEC in 2018. Musk became CEO in October 2008.

What Positions Does Elon Musk Hold at Tesla?

In addition to the title of chief executive officer, Elon Musk was given the title of "Technoking of Tesla" in 2021.

Who Are Tesla's Top Shareholders?

As of Dec. 15, 2020, Tesla's top individual insider shareholders are Kimbal Musk, Zachary Kirkhorn, and Jerome M. Guillen, and its top institutional shareholders are Elon Musk, Susquehanna Securities, and Capital World Investors.

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Investing in Tesla Stock (TSLA) (2024)

FAQs

Is tsla a good stock to buy? ›

Overall, 47% of analysts covering Tesla stock have Buy ratings. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. The average analyst price target for Tesla stock is about $207.

What if I invested $1,000 in Tesla 10 years ago? ›

This means that your $1,000 10 years ago — technically, $1,002 — would have bought 60 shares of Tesla. As of Mar. 3, 2024, those 60 shares of Tesla would be worth $12,158.40. That marks a 28.342% annual rate of return.

Is Tesla stock expected to rise? ›

Its one-year Tesla stock forecast 2025 is for the stock to fall 17.5% to $204.38. WalletInvestor's Tesla stock long-term forecast is also negative as of July 24, 2024. The site expects Tesla future stock price for 2027 to slip to $127 during the summer and then down to $113.61 by December 2027.

Is Tesla a good stock to buy in 2024? ›

Tesla Stock Declines In 2024

Analysts currently expect Tesla earnings per share of just $2.41 in 2024, according to FactSet. That would be a 23% decline vs. $3.12 in 2023. Wall Street's 2024 EPS consensus estimates for Tesla have come down 37% since the end of 2023.

How much will Tesla stock be worth in 5 years? ›

Cathie Wood and her Ark Invest firm updated its Tesla (TSLA) stock price target to 2,600 by 2029 on Wednesday, the day before the EV company holds its annual shareholder meeting with a key vote on Chief Executive Elon Musk's $56 billion 2018 compensation package.

Is Tesla stock at risk? ›

Risk and Uncertainty

As the EV market leader, Tesla is vulnerable to growing competition from traditional automakers and new entrants. As new lower-priced EVs enter the market, the firm may be forced to continue to cut prices, reducing its industry-leading profits.

How much is $10,000 in Tesla stock 10 years ago? ›

If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $2.1 million now. That works out to a more than 70% average annual return. The same $10,000 put into the S&P 500 during that time grew just 274% to $37,376. That's just 14% compounded annually.

How much will Tesla stock be worth in 2030? ›

He forecasts Tesla stock to gain about 550% to hit $1,200 a share by 2030, and for SpaceX to triple in valuation over the same period, according to a recent interview conducted by Bloomberg. Baron runs the Baron Focused Growth Fund, which counted Tesla and SpaceX as its largest holdings as of December 31, 2023.

What is the 10 year return on Tesla stock? ›

Ten Year Stock Price Total Return for Tesla is calculated as follows: Last Close Price [ 246.38 ] / Adj Prior Close Price [ 14.90 ] (-) 1 (=) Total Return [ 1,553.3% ] Prior price dividend adjustment factor is 1.00.

Will Tesla ever pay a dividend? ›

Tesla has never declared dividends on our common stock. We intend on retaining all future earnings to finance future growth and therefore, do not anticipate paying any cash dividends in the foreseeable future. When was Tesla's initial public offering (IPO)?

Which are the best stocks to invest in 2024? ›

Top Long Term Stocks to Buy in 2024 Based on 5Y Avg Net Profit Margin
NameSub-SectorPE Ratio
Sun Tv Network LtdTV Channels & Broadcasters15.93
UTI Asset Management Company LtdAsset Management17.12
Oberoi Realty LtdReal Estate33.49
Five-Star Business Finance LtdConsumer Finance28.78
6 more rows
6 days ago

What is the target price for Tesla in 2025? ›

Tesla Stock Price Predictions for 2025

In 2025, #TSLA could range between $22 and $389 per share based on the most bullish and bearish projections. The bullish outlook reflects projections for surging demand in the electric vehicle industry combined with Tesla's dominant positioning and technical edge.

Is Tesla a hold or sell? ›

Is Tesla stock a Buy, Sell or Hold? Tesla stock has received a consensus rating of buy. The average rating score is and is based on 49 buy ratings, 28 hold ratings, and 15 sell ratings.

Is Tesla undervalued now? ›

Tesla is the most undervalued AI play in the market, says Wedbush's Dan Ives.

Will Tesla shares ever recover? ›

Tesla shares have gone through even worse turmoil previously, but have eventually recovered. That said, the company faces several uncertainties and unknowns in the near term, which makes the short-term outlook quite hazy.

Why is Tesla stock so strong? ›

Strong and rising energy demand amid the artificial intelligence boom bodes well for Tesla's energy business, which represented 7% of first-quarter revenues. The business reported record profit margins of 24.6% with energy storage deployments, the Megapack in particular, reaching an all-time high in the first quarter.

Is Tesla a fair value stock? ›

Company Report

With our outlook largely unchanged, we maintain our $200 per share fair value estimate. Our narrow moat rating also remains unchanged.

Why did Tesla miss earnings? ›

Factors Contributing to the Earnings Miss

Several key factors contributed to Tesla's recent earnings miss. Firstly, the company's adjusted operating margin shrank to its lowest in three years, dropping to 14.4% from 18.7% a year earlier. This decline marks the fourth consecutive quarter of margin shrinkage.

What time is the Tesla conference call? ›

Tesla will host a conference call starting at 5:30 p.m. Eastern time to discuss results and other details. On the earnings call, investors likely want to hear CEO Elon Musk reiterate that Tesla can increase its sales volume in 2024. Tesla delivered about 1.8 million cars in 2023.

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