Tesla is creating more and more milestones this year 2020. Just recently, it became the most shorted stock in the United States, taking the top spot crown from Apple. After reaching its unbelievable all-time-high, Tesla stock has become at the top of every investor’s watchlist because it always leaves many blue chip stocks in the dust.
With over 145.08 billion market capitalization while writing this, Tesla has a brighter outlook to grow more sales this year, targeting over 500,000 car deliveries, a 36% gain compared to last year’s figure.
What is Causing Tesla Stock Soaring Higher and Higher?
The first one is the fact that Tesla is the most successful first mover in the Electric Vehicle market. They build their cars from the ground up using their own software, incredible battery, electric engine, and unique design.
Many people say Tesla is the iphone of Electric Vehicles. Indeed,they have a strong point. Their amazing cars and trucks continue to receive loyal customers. There is a distinctive appreciation of their products. Tesla’s genius CEO, Elon Musk himself has created his own fan base.
Tesla’s other business segment is energy generation and storage. The company’s mission is to accelerate the world’s transition to sustainable energy. They manufacture a set of energy solutions, Powerwall, Powerpack and Solar Roof which contributed around $436 million in revenue in their Q4 earnings.
Target price upgrades and positive forecasts also encourage thousands of investors to buy more shares. Similarly, the FOMO effect (Fear of Missing Out) causes massive rally when investors rush to buy TSLA stocks.
Another factor is when Tesla beat their earnings estimates. Their Fourth Quarter reported $2.14 earnings per share compared to the expectation of $1.72 per share. Tesla also reported $7.38 billion in revenue beating the $7.02 billion estimate.
Let’s not forget the opening of Tesla’s new Gigafactory where they produce their own batteries at the volume required to meet their production goals.
The recent opening of Tesla’s Gigafactory in Shanghai, China also created high volume of Tesla trades in the stock market. Let’s wait what will happen at the opening of its next Gigafactory in Berlin, Germany.
Here’s How Much You Would Have Now If You Invested 100 Shares of Tesla Stocks 10 Years Ago
Investors who had the opportunity to buy Tesla stocks last year are raking in huge profit. What more with those investors who have invested a few years ago. And if you are one among those who invested a decade ago, here’s how much you would have now.
If you have invested 100 shares of Tesla stocks worth 17 per share last 2010 during its Initial Public Offering (IPO), you would have $80,000 by now. That is a total return of 4606%.
Note that from the computation above, we used the closing price of Tesla stock during the publication of this post which is on February 14, 2020.
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