Tesla Motors, Inc. Stocks Forecast

Tesla Motors: Company Information

Tesla Motors is a dynamic Silicon Valley-based American automobile company focused on the production of electric vehicles. Named after world famous electrical engineer and physicist Nikola Tesla. In addition to cars, the company is engaged in the production and sale of energy storage elements.

Among the company’s investors are Google founders Larry Page and Sergey Brin, one of the founders of PayPal payment system Elon Musk and Jeffrey Skoll, founder and president of eBay, Daimler AG. Elon Musk invested more than all his own funds – $ 7.5 million – earned from the sale of his company.

Manufacturing facilities of the company: Tesla Factory – a factory in Fremont (California); the Gigafactory 1 battery plant in Nevada – the largest in the world – will produce 500,000 batteries for electric vehicles from 2020; Tesla Shanghai plant —— first outside the US, officially opened in January 2020

Opportunities for the trader

Unlike most automakers, Tesla does not sell cars through independent dealers. As a rule, Tesla showrooms are only demonstration sites; purchases are made directly through the Tesla website. For the convenience of users, Tesla is rolling out a network of “Superchargers” – electric vehicle charging stations designed to enable Tesla vehicles to take long journeys.

The company’s shares are the most dynamic among the stocks of automobile companies, and in terms of capitalization Tesla has taken the lead, confidently overtaking the country’s car brands. The global trend towards reducing harmful emissions into the atmosphere has led to an increase in the popularity of electric vehicles. By 2050, most European countries are expected to switch 100% to EVs and hybrids, and the US to 75%.

Split shares

On September 1, 2020, Tesla’s shares were split by a factor of 1 to 5. Immediately after the split, shares soared by 12.5%. Tesla’s capitalization has grown to $ 464 billion, making it the seventh most expensive American company. Its founder, Elon Musk, was included in the top three richest people in the world, according to the Bloomberg Billionaires Index, with a fortune of $ 115.4 billion.

What does stock split mean?

A split is when a company divides shares into several parts. For example, if a corporation announced a split at a ratio of 5 to 1, and its shares are worth $ 500, then on the date announced in advance, the owner of one share will receive four more. Each security will cost $ 100, and the investor will have five of them.

Thus, there were more shares, but the total value did not change. Similarly, the total number of outstanding shares quadrupled, but the capitalization remained unchanged. Dividends per share are cut four times. The dividend yield remains unchanged.