Company Research | Tesla

July 11, 2024by

Today, we’ll talk about Tesla (TSLA), which has been a growth leader over the past 3 months.

Over the past three months, Tesla shares have risen by +22.3%. At the same time, the consumer staples sector, to which the company belongs, grew by +8.0%, and the S&P 500 index rose by +8.1%. As you can see, Tesla shares show better returns than the sector average.

Tesla is one of the largest manufacturers of battery electric vehicles in the world. The company also develops software for autonomous driving, batteries for stationary energy storage for residential and commercial facilities, solar panels and roofs for generating electricity. Tesla also owns a network of fast-charging stations.

The company operates in the automotive industry. It was founded in 2003, went public on the NASDAQ stock exchange in 2010, and was included in the S&P 500 index in 2020. For the past 21 years, the company has been run by Elon Musk and a team of experienced managers.

Tesla’s main competitors in the S&P 500 index are General Motors and Ford Motor. As you can see from the table above, it is ahead of its competitors in terms of capitalization, as it has a number of competitive advantages.

Tesla’s strengths are based on a unique market positioning strategy. In less than 10 years, the company has gone from a startup to a globally recognized car manufacturer. In order to hold a leading position in the market, the company spends 4% of its annual revenue on research and development. To meet the growing demand for electric vehicles, the company opened 2 new factories in 2022. In addition, in 2016, Tesla became the world’s first vertically integrated company in the field of sustainable energy by acquiring SolarCity, a leading provider of solar energy systems in the United States.

Tesla published its latest report on April 24. Manufacturing costs account for 80% of the revenue structure, and gross revenue for 20%. Over the past quarter, the company earned a profit of $2.5B. And its market capitalization now stands at $802.1B.

*This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
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