After Market Capitalization: Tesla Shares Can Rise 10 Times?

"It's so funny (LOL)." On June 11th, the US Elon Musk, Tesla CEO, issued such a state on the social media platform personal account.

A fan message asked musk what this meant, and he replied, "stonks." Then there was a picture explaining that the stock price was rising, and the cartoon characters standing on the side showed a wooden look. This word, similar to the word stock in stock, is a popular Internet term used to describe the absurdity of the stock market.

Prior to June 10th, Tesla welcomed the historic moment: its share price exceeded 1000 dollars, and surpassed TOYOTA to become the world's largest car company with the highest market value. Although there is still some controversy about the market capitalization, it is obvious that Tesla represents a consensus that the future has become a larger investor.

The details of the dispute came from the identification of TOYOTA's market value. On the closing day of June 10th, Tesla's market value reached $190 billion 100 million, while TOYOTA's market value was generally considered to be $181 billion 200 million. However, several media, including Bloomberg, mentioned that TOYOTA also had some stock stocks outside its tradable shares, so its actual market value at that time was $210 billion 500 million.

On the other hand, even if the stock market value is only counted, Tesla surpasses TOYOTA. It seems that it is just a flash in the pan. After June 10th's high light, Tesla's stock price soon appeared callback, while TOYOTA's investors also tried hard to return some of the face of the global car company boss. As of press release, TOYOTA's market value was $176 billion 780 million, Tesla was $173 billion 470 million.

But these can not erase Tesla's achievements in the capital market and the repercussions. As a new car company, which has been established for less than twenty years, Tesla has been on the market for ten years. The highest share price has risen 60 times than the initial issue price of 17 US dollars, and its market value has also exceeded Ford, general motors, BMW, Daimler, Volkswagen and other traditional car companies. Now it is approaching the highest market value TOYOTA, although it has become commonplace, it can still cause the traditional automobile industry's vigilance and reflection. 。

Such a stock price performance makes musk also call it crazy. In fact, this is not the first time that musk showed surprise at Tesla's share price. In May 1st, musk wrote plainly on the same platform: "Tesla's share price is too high." At that time, Tesla had about $800 per share and its market value was about $150 billion.

But some investors in Tesla do not think so. A firm look at many said that Tesla's share price and market capitalization still had a lot of room to grow, of which the most "big mouth" was Ron Baron. When Tesla's shares rose to $1000, he said in an interview that he had been bullish on his own Tesla stock and expected to grow 10 times in the next ten years.

What is it that supports Tesla's rise?

Why did Tesla climb?

Tesla has been listed for ten years, but the stock price boom has only begun in the past year.

Looking at the stock market performance since Tesla's listing, it can be roughly divided into four stages: first, June 2010 (listing) to April 2013, two from May 2013 to December 2016, three from January 2017 to October 2019, and four from January 2017 to date.

The overall performance of the first stage is "decline". Despite being a long lost car stock in the US capital market, Tesla was also warmly welcomed by the capital on the day of its listing, but was quickly returned to its original form. In June 2012, Tesla delivered the first mass production vehicle Model S, but on the one hand, Model S was relatively small. On the other hand, Wall Street questioned that Tesla might not have funds to complete mass production, so Tesla was still in crisis.

At that time, musk had to start refinancing, while borrowing money from the bank, and started negotiations with Google. Google did not talk about the acquisition, but Tesla unexpectedly ushered in a turn in 2013 - Model S suddenly sold, and in the first quarter of 2013, Tesla achieved its first quarterly profit.

With its quarterly earnings report for the first time, Tesla entered the second stage with a significant increase in its stock price. In September 2013, Tesla's share price doubled to $115 from 51 US dollars at the end of April. From then until the end of 2016 more than three years, Tesla has been in the air game, the state of shock rise, stock prices once rose to 280 U. S. dollar high.

In the meantime, Tesla's business was implemented one by one, increasing investor trust in the new car company: in 2014, Tesla announced that Gigafactory (super battery factory) would be established in Nevada to increase battery production and reduce battery costs. In 2015, Tesla released second mass production models Model X; March 2016 Tesla released entry level Model 3.

The release and listing of Model 3 is expected to catalyse the rise of Tesla's share price. Data show that in the first half of 2017, when Model 3 listed and brewed mass production, Tesla's share price doubled again to a high of $371. At that stage, Tesla's market value surpassed Ford and GM and became a new automotive star in the US stock market.

However, in the third stage, Tesla's stock price is not smooth sailing. From the company's business level, Model 3 of the mass production process did not meet expectations, and the financial statements did not achieve stable profits. Tesla fell into a wider controversy. From external events, musk suspected that the company was privatized on the personal platform because of its excessive share price pressure in August 2018. After musk was accused and lost the position of chairman, Tesla's stock price was inevitably affected. Negative effects.

Overall, the failure of the expected performance is the reason why Tesla's stock price has been improving for a long time. However, at that time, every time a quarterly report was released, the capital market would obviously adjust the stock price. But since November 2019, Tesla has turned over again. At the end of October, Tesla handed over a quarterly report of over three of its profit, and later on the layout and performance of the Chinese market, Tesla opened its first strong rise.

In particular, in 2020, after the Model 3 capacity increased, sales exceeded expectations, and the Shanghai plant started to work quickly, Tesla's share price rose to more than 300 in the end of October 2019, rising to $780 in early February this year, rising 160% in 3 months. During this period, Tesla's market value easily surpassed the public and jumped to second in the global car industry.

In February 19th, Tesla's shares surged to a record high of $917. Then, despite the fall in the US stock market, Tesla shares also fell all the way down for a full month. In March 18th, Tesla's stock price returned to $361, about mid December 2019.

But at that time Tesla had ushered in an inflection point, and thereafter the stock price entered the rising channel again until it broke through 1000 dollars. This time, Tesla's stock price increased by 180%, which took less than 3 months.

Tesla's rise is related to the good news that has been released recently. On the one hand, Mask revealed in an internal mail that the production has been suspended due to the outbreak. In order to expand the production of cars, it is time to start producing Semi semi hanging electric trucks. On the other hand, the Chinese market has made breakthroughs in sales. Data show that Tesla sold 11095 cars in China in May, an increase of 205%.

Can Tesla still rise?

Tesla in the capital market seems to have passed the dangerous period and has entered a new stage of "one answer to one's answer". Although Tesla's stock price has come back in recent trading days, it does not seem to affect the popularity of its funds.

For a while, the media both at home and abroad were discussing how Tesla arrived today, and how much room it has to go up. The performance and expected performance of car sales, of course, is one aspect, but it has to be mentioned that Tesla's layout outside the field of automobile manufacturing is also gradually clear.

A long-time interest in Tesla said why Tesla's share price could rise to the current high point. People have not reached a conclusion. However, he personally believes that Tesla's "mega mile" battery and its cooperation with Chinese battery makers in the Ningde era are worth noting.

First, Tesla has greatly reduced the battery cost through large-scale production and cooperation with battery manufacturers. Recently, the Chinese Model 3, which is equipped with the lithium iron phosphate in the Ningde age, will soon be on the market. The lithium iron phosphate battery does not contain cobalt, which is an effective way to reduce the cost of batteries.

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