TSLA/USD Technical Analysis
TSLA/USD - FAQs
Tesla was one of the numerous Nasdaq stocks to experience a major dip in value. Despite this, the electric car manufacturer remains highly lucrative. Moreover, its attractive valuation positions it for potential long-term success. As the most profitable short trade in the U.S. market in 2022, Tesla generated $15.85 billion in paper profits for investors. This marked the most successful year ever for Tesla short sellers, though they have recovered only about 25% of the estimated $60 billion losses from 2010 to 2021 as of 6 January 2023.
Tesla is undeniably dominating the automotive industry, having recently become an incredible profit machine. In the third quarter of 2020, total revenue rose by an impressive 56% to a staggering $21.45 billion while net income doubled to $3.29 billion. This impressive feat was especially remarkable given that Tesla's largest rival, Toyota, which still largely produces gasoline-powered vehicles, could only generate $3.15 billion in the same period despite selling seven times more vehicles than Tesla did, according to Nikkei Asia. This is indicative of the vast potential of Tesla's electric vehicles and its innovative approach to automobile manufacturing and design - showcasing its ability to revolutionize the industry and set it apart from its peers.
Tesla is facing increasing competition in the electric vehicle (EV) market, which will likely lead to its profit margins being eroded. Adding to this challenge is the looming risk of a recession, which could have a devastating effect on all automakers. Nevertheless, Tesla remains in a strong financial position due to their history of fiscal prudence and proven track record of success. The growing strength of the US dollar might be bad news for investors but the automaker seems enthusiastic to make profits.
Factors that influence the price of Tesla stock include industry competition, company performance, macroeconomic factors such as inflation and interest rates, investor sentiments, news and events.