Tesla: This Is Just Crazy!

www.tesla.com/fleet

Genius and madness are often close together. The best example is Elon Musk. The visionary and serial founder has made it to the richest person in the world. At the same time, however, he repeatedly irritates people with crazy proposals and polemical tweets. The symbol of Musk’s gigantomania is the carmaker Tesla (TSLA). The company has actually grown strongly in the shadow of the negative media attention, and today has a good reputation.

We have analyzed the value for you and provide insight below. But first, some background on the company itself. Tesla Motors was founded in 2003 and was the first company to launch an automobile with a battery made of lithium-ion cells in 2008: The Tesla Roadster, which was built until 2012. Its current lineup includes the Model S sedan, Model X sporty SUV, and Model 3 and Y for the mass market. Tesla has been listed on the stock exchange since 2010.

These Tesla Numbers Are Mind-Boggling

Tesla has reached its tipping point in profitability. The two gigafactories in Texas and Berlin-Brandenburg have started production and are now producing profitable cars instead of just wasting money. In Q1, sales rose 80.5% to $18.8 billion. The bottom line was a profit of $3.3 billion. Tesla also benefited here from increased prices. Deliveries increased by 69% to 305,407 cars.

With the production ramp-up in Texas and Berlin, it should be possible to increase production considerably in the current year. An annual production capacity of 2 million vehicles could be reached before the end of this year. 

But that is not the end of the story. In early May, Tesla announced plans to build a second plant in China, and the Grünheide site is to be expanded by 250 acres and a freight yard. By 2030, Elon Musk’s goal is to ramp up production to 20 million vehicles per year.

This Is How We See The Value

Customers will have to wait a little longer for new models. Both the Cybertruck and the new Roadster are years too late. Tesla argues high utilization on current models and problems sourcing batteries. Tesla is delivering incredible growth in sales and profits.

Years of criticism about profitability are a thing of the past. Additionally, capacity expansion strengthens growth prospects for several years. Tesla is growing into its valuation and justifies the high P/E due to its high growth and extreme production efficiency. There’s no dividend here, growth is the only thing that counts here.

Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.
Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.

Related Articles