TESLA MOTORS

Analysis of Tesla Motors share price

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The stock market shares of quoted large American companies are now available to investors through online trading platforms. Among them we have chosen to study those of the Tesla Group at this moment. In this article you will learn important practical information about the company’s activities and historical data from technical analyses of its rate over the last ten years.

Latest news

Tesla's market cap, dividends, sales and earnings in 2020

18/10/2021 - 12h28

Despite the Covid-19 pandemic, carmaker Tesla delivered nearly half a million cars in 2020. This performance reflects the good momentum of the group's business during this year.

Elements that can influence the price of this asset:

Analysis N°1

Firstly, we must of course look at the support of the various governments to individuals for the purchase of electric and more environmentally friendly vehicles, including duty exemptions or more direct financial aid.

Analysis N°2

It will also be important to keep an eye on the improvements made by the group in terms of quality control processes which may enable it to reduce production costs and thus become more competitive.

Analysis N°3

The development of the group's presence in newer markets that are increasingly adopting electric vehicles will also be monitored because of the positive impact this can have on profitability.

Analysis N°4

The group's business may also be impacted by the global economic health or by certain shortages such as the current semiconductor shortages.

Analysis N°5

There will also be increasing competition in the sector, including the arrival of new brands of low-cost 100% electric vehicles from Asia and competition from other new energy sources that may be used in the automotive industry.

Analysis N°6

Tesla's partnerships and innovative developments in other segments or specialties may also be beneficial to the company and should be monitored.

Analysis N°7

Finally, Tesla's roadmap with its strategic development plans and financial results should also be followed.

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General presentation of Tesla Motors

The Tesla Group, or Tesla Motors, is an American Company that specialises in the design, manufacture and sale of electric vehicles. However, its activities can be divided into various sectors including the sale of vehicles, the sale of motor-propulsion components for electric vehicles and the provision of development services.

Because of their two major production sites, they generally touch the American market but also China and Norway.

The price for Tesla shares is currently quoted on the Nasdaq Global Select American market. It is also included in the composition of the Nasdaq 100 stock exchange index.

Analysis of Tesla Motors share price
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The major competitors of Tesla Motors

It is also important to be aware of Tesla's main competitors in the electric vehicle market. The group is facing some major adversaries, of which here is a quick presentation:

Stellantis

First of all, the multinational group Stellantis, resulting from the merger in January 2021 of the PSA and Fiat Chrysler Automobiles groups. The group operates the 14 car brands of the two entities, 5 of which come from PSA and 9 from FCA.

Volvo Cars

This Swedish vehicle brand is a subsidiary of the Chinese Geely Group and was formerly owned by a Swedish car, truck and construction machinery conglomerate. Recently, the group has become one of the big names in electric cars by launching the first SUV of its kind on the world market.

Byton

Chinese carmaker Byton, which is based in Nanjing and has offices in Germany and the US, is also worth keeping an eye on. Having recruited some of the biggest names in the automotive industry to create its team, including executives from BMW, Tesla and Faraday, the company is also funded by Chinese group Tencent Holding. The Byton Group was also one of the first to introduce 100% electric SUV models in 2018, which were then released in China and Europe in 2020 and 2021.

Volkswagen

We'll also keep an eye on the Volkswagen AG Group, which is a German car manufacturer on the market since 1937 and based in Lower Saxony. The group is responsible for several car brands and models including Volkswagen, Audi, Seat, Cupra, Skoda, Porsche, Lamborghini, Bentley, Ducati, Scania and MAN and JETTA in China. It also offers financing, leasing and fleet management services. Currently, the Volkswagen Group is the world's largest vehicle manufacturer and several of its brands have joined forces to produce premium and luxury electric vehicles.

Nissan Motor Company

This other Japanese company is a car manufacturer formerly known as Datsun. The head office is based in Yokohama since 2010. The group has also been closely linked to the French car manufacturer Renault since 1999 through the Renault-Nissan Alliance, which is currently the world's largest automotive group in terms of number of vehicles sold. Since 2012, the Nissan group has held almost 15% of the capital of the Renault group and, conversely, the Renault group holds 43.4% of the capital of the Nissan group.

Hyundai

Finally, we will also keep an eye on the Hyundai Motors Group, which is the automotive and agricultural arm of the Korean conglomerate Hyundai and which is also the one and only independent manufacturer in South Korea and the leader on its domestic market. The group produces a large proportion of the electric vehicles on the market.


The major partners of Tesla Motors

Tesla Motors has also implemented various strategic partnerships that have enabled this company to keep its position as leader in this industry sector. Here are the major partners of Tesla:

Nvidia

The Tesla Motors Group and the NVidia Company have also been partners since 2016 for the initial development of the largest tactile screen created for an automobile. NVidia already supplies the integrated leisure systems and digital dashboards for each of the vehicles produced by Tesla Motors such as the recent Model X.

Panasonic

Still in 2016 the Japanese Panasonic Group announced an investment of over 30 billion Yen in a Tesla Motors photovoltaic cells and modules manufacturing unit. This announcement spurred an increase of 30% in the Tesla share price during the trading period.

Mercedes

Even more recently, in 2019, Tesla Group hinted at an upcoming partnership with Mercedes Group to develop a zero-emission van that would result in two versions of the vehicle, one for each manufacturer.

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Frequently Asked Questions

How is the ownership of the Tesla Group divided?

Currently, the Tesla Group is partly owned by a number of large private shareholders including Elon Musk with 18.9%, Public Investment Fund Private Equity with 9.18%, Baillie Gifford & Co with 7.46%, Capital Research & Management Co with 5.68%, The Vanguard Group Inc with 4.32%, Fidelity Management & Research with 2.77%, Jennison Associates with 2.24%, BlackRock Fund Advisors with 1.99%, Larry Ellison with 1.66% and SSgA Funds Management Inc with 1.63%.

What were Tesla's latest results?

Tesla's 2020 annual results showed a net profit of nearly $721 million and a turnover of $31.5 billion, an increase of more than 28% over one year. Its operating margin was 6.3%, one of the best in the automotive industry. Tesla thus sold 499,550 vehicles in 2020 and even set a record for quarterly sales in the last quarter of this year. The group also forecasts a 50% increase in sales in 2021.

What is the best way to analyse the Tesla share price?

In order to conduct a comprehensive study of the Tesla share price online, it is necessary to consider several types of analysis. These include a high quality fundamental analysis based on the study of external elements, important factors and publications, and a technical analysis based on a study of stock market charts.

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