BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.
A technology company that has been on the cutting edge of innovation since its inception, Tesla is the largest and best-known electric vehicle manufacturer in the world. In addition to cars, it is also involved in various energy projects and design.
Launched in 2003 as Tesla Motors, the name of the company/brand has become forever entangled with that of CEO Elon Musk. Quite surprisingly however, Musk was not among the main founders of the company. Tesla was founded by Marc Tarpenning and Eric Eberhard.
Unlike other major automakers, Tesla has not yet expanded beyond its factory in Fremont, California. Despite being small compared to the cream of the crop of the auto industry, Tesla has thus far put well in excess of half a million electric vehicles onto the roads. It is also the uncontested best seller of electric vehicles.
Tesla’s first vehicle was the 2008 Roadster. It was followed by the Model S in 2012, the Model X in 2015, the Model 3 in 2017 and the Model Y in 2019.
Tesla’s top shareholders
The largest holder of Tesla stock is CEO Elon Musk. Musk possesses some 38.6 million Tesla shares, though his possession is an indirect one – through a trust. According to Forbes’ list of billionaires, Elon Musk is currently the 40th richest person in the world.
Musk was born in South Africa. He launched several successful companies before and after Tesla. SpaceX and SolarCity are two such initiatives of his.
The second largest individual shareholder of the company is its CTO, Jeffrey B Straubel. Straubel is in possession of some 306,000 Tesla shares. That just comes to show how big Musk’s share of the operation truly is.
CFO Deepak Ahuja is also one of the major Tesla shareholders. His stake in the company amounts to over 60,000 shares.
What moves the needle on Tesla shares?
Over the last year, the company has seen some rough sailing in several regards. From various scandals linked to Musk himself, to cash burn threatening its very existence and production breakdowns, it has been through thick and thin.
Despite the upheaval, the company reported profits for the 3rd quarter of 2018, and it now looks set for continued profitability.
Driving down the price of the Model 3 seems to be the main focus of the company. The move might entail the laying off of thousands of workers. Still, the affordability and competitiveness of its products might justify the sacrifice on Tesla’s part.
A high-risk investment
At this point in time, Tesla stock is considered to be a high risk investment. Whether there are equally massive rewards associated with this high risk is questionable too.
Options positions tell a tale of uncertainty among investors. Tesla stock has been treading water over the last couple of years, as the company was struggling to gain traction and to secure proper footings financially as well as reputation-wise.
Technical analysis seems to point to a budding bullish trend, but as always, the fundamentals far outweigh the technical aspects. And they leave a lot of room for improvement still…
BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.