“I don’t think any other stock has captivated investors on Wall Street or Main Street the way Tesla has. It’s just become one of the most controversial names and one of the most watched names out there.” These are the words of Gunjan Banerji, market reporter of the Wall Street Journal when asked about Tesla’s market charm that captivated numerous investors.
Summer of this year, Tesla just made a major overtake on Toyota and holds the spot for the top automobile company on the planet when the former hit the 190 billion market cap, and still climbing. However, Tesla’s sales aren’t the main contributor to the rise. As a matter of fact, Toyota even sold a whole lot more vehicles last year. Investors were the ones that pushed Tesla into these heights in response to CEO Elon Musk’s promises of a sustainable future.
Tesla pioneered its first EV in 2006. At the time, the concept of electric cars was not something that the world was ready to grasp as feasible yet. October 2019 came as a surprise when Q3 profits shot. In the times prior to that, Tesla still did not have such a reputation in the car industry yet. There was a depression that lasted for more or less three years. Musk even considered “taking Tesla private at $420” a share, so the sudden stock spike seemed to have come out of nowhere. Turns out, this was just a marijuana joke.
When the Cybertruck was revealed to the world, its durability was something that Elon Musk emphasized. Unfortunately, the demo was quite a failure when the glass windows shattered after an employee threw a metal ball at it. The company stocks fell for a bit after this, but still managed to rise above the occasion not long after. The fail actually brought a lot of attention to the vehicle.
Two days before Christmas, Tesla shares surpassed that $420 mark. Then the chain of victories followed. Tesla achieved its 360,000 car delivery goal for the year. Model 3 deliveries for China have also been fulfilled, with a weekly production of 1,000 cars.
Many investors say that in order for Tesla to build a reputation in the EV industry and show others that it is indeed a force to be reckoned with, the company needs to make its mark in China. And so it did. This paved way for Tesla to have its second profitable quarter. Then came the announcement of the Model Y compact car.
However, in March, operations in the California factory had to be temporarily suspended due to the imposed lockdown caused by the Covid-19 pandemic. Stocks fell low for a bit in the month but still was able to recover.
Elon Musk then revealed the Semi all-electric truck which triggered Tesla stocks to skyrocket past $1,000. When the company hit a record of four consecutive profitable quarters, many were confident that Tesla will make it into the S&P 500 stock market index.
With Tesla’s purely electric automobile production, it has earned ZEV credits that other automakers who fail to live up to the zero-emission vehicle program are able to purchase in order to resume operations in the state of California.
Tesla was able to generate a revenue of more than 2 billion dollars in mere ZEV credits and it is largely speculated that this was one of the major contributors to Tesla's rising revenue.
But there is so much more that attracts investors to Tesla. The strong prediction of the world's transport system going electric in the coming years is what drives people to look to Tesla for solutions that will support sustainable living.