Analysis of Tesla Motors share price for trading

The stock market shares of quoted large American companies are now available to individual 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.

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Analysis of Tesla Motors share price for trading
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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About the Tesla Motors Group:

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 major competitors of Tesla Motors:

Tesla Motors is specialised in the production of electric vehicles and therefore has had to face increasingly hard competition over recent years from other major vehicle constructors around the world which have launched into the ecologically friendly vehicle sector. To assist you in achieving pertinent analyses of the Tesla Motors share price we present here details of the major competitors to Tesla Motors in this sector:

  • Renault, the precursor in this sector in France.
  • The PSA Group which is a newcomer to the electric vehicles sector but nevertheless represents a serious threat.
  • BMW which is the pioneer of electric vehicles in Germany with a more upmarket range of models.
  • Volkswagen who launched a large range of electronic and autonomous vehicles in 2017.

 

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:

In 2014 the French Group, Allianz, specialised in insurance, and more particularly its French automobile insurance subsidiary, signed a partnership with Tesla Motors thereby offering their services to clients of this automobile brand.

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.

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.

 

Price analysis of Tesla Motors shares:

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.

We can quickly observe the rising potential of this share on the historical charts. After a long period of stagnation this share has in fact experienced a strong rising trend since 2013 that continues even now.

 

Important stock market data about Tesla Motors shares:

Let us now look together at some highly important information about Tesla Motor Company shares, and more precisely the Tesla Motors Company and its position on the national and international stock markets. This general information will be useful for you to gain a better overall understanding of this asset’s position on the stock markets and thereby assist in calculating a better analysis of its price in real time.

  • In 2017 the total stock market capital of the Tesla Motors Company reached $52,396.54 million.
  • The number of shares issued by the Tesla Motors Company and currently in circulation on the stock markets is around 8,161,643.
  • The Tesla Motors Company share price is currently quoted on the Main Market of the Nasdaq Global Select Market in the United States.
  • The Tesla Motors Company share price is also included in the composition of the Nasdaq100 American stock market index.

The shareholdings of the Tesla Motors Company are composed as follows: 13.5% FMRC, 8.23% Baillie Gifford & Co, 7.37% T Rowe Price Associates, 5% Tencent Holdings, 3.50% Vanguard Group, 2.39% BlackRock, 1.65% Jennison Associates, 1.62% MSIM, 1.41% State Street Corporation and 1.28% Capital World Investors.

 

Economic and financial history of the Tesla Company:

To better understand the historic stock market charts of Tesla Company shares and be able of analysing past trends it is important to know the events that marked the recent history of this company. This is what we offer here with some important dates and information from the last few decades.

  • The Tesla Group was created in 2003 by Martin Eberhard and Marc Tarpenning and its name was chosen in homage to the scientist Nikola Tesla.
  • In 2008 Tesla motors launched the production of its first series of vehicles, the Tesla Roadster. This 100% electric vehicle was sold through the Internet via the company’s website. In four years it enabled the share price of the company to grow tenfold.
  • Between 2008 and 2009 Tesla produced around 1,000 vehicles reserved in advance by American clients. It wasn’t until 2009 that the company became international with the sale of Roadsters in Europe under the name ‘Signature Edition’ with a limited series of 250 vehicles.
  • In 2013 the Tesla Motors Company won the title of FUA world champion constructor in alternative energy category IIIA with its Roadster 2.5 numbered EU377 piloted by James Morlaix with Sebastien Chol as co-pilot.  In the same year, the group launched a new division named Tesla Energy Group, or TEG, with the objective of designing and producing energy storage systems to equip the Tesla vehicles as well as the sale of this technology through diverse partners of the brand such as Daimler and Toyota.
  • In 2014 Elon Musk opened the Tesla patents to the general public.
  • In 2015 Tesla decided to diversify its activities with the launch of PowerWall, a battery designed for the residential sector, available in two different versions; 7 and 10 kWh. The group also planned to release a professional 10 kWh version of this battery for companies. Also in 2015 Tesla found itself to be in deficit despite a record number of vehicles sold and a rise of 52% in these sales with a net loss of 184 million dollars. At the same time, the group purchased the River Tool Company for an undisclosed amount, this company employed 100 people in the United States and specialised in aluminium cutting tools.
  • In 2016 the Tesla group registered more than 375,000 orders after the introduction of the Tesla Model 3 with the first deliveries planned for 2017. In the same year it announced the purchase of the SolarCity Company for 2.8 billion dollars following the latter company’s difficult situation. The offer was then renegotiated at the lower price of 2.6 billion dollars.
  • Again in 2016, the American financial market authorities opened an investigation of Tesla accusing the group of not informing the investors during a fund raising round of an accident that occurred due to a problem with the assisted driving system of its cars. In the same year the group announced that its vehicles still in production would all be equipped with compatible systems for 100% autonomous driving. They planned to develop the software systems during 2017 and 2018. Also during 2016 the Tesla Group announced the purchase of the German engineering company, Grohmann Engineering, for an undisclosed amount with the objective of increasing its production capacity with automated systems.

 

How was the Tesla Motors Group financed?

The first investment that enabled the launch of the Tesla Company was that of the co-creator of PayPal, Elon Musk, who became President of the Executive Council of Tesla. He was also responsible for the initial two rounds of financing and co-directed the third round with Vantage Point Venture Partners. This last round led to the entry of new but well known investors such as Sergey Brin and Larry Page, co-founders of Google, and Jeff Skoll, previous President of the EBay Group.

In 2007 no less than 105 million dollars was raised by the group during a private financial deal whereby Elon Musk participated to the extent of 37 million dollars. Elon Musk went on to finally manage the group in 2008 following the departure of Ze’ev Drori, a Californian entrepreneur who had taken over from Martin Eberhard in 2007.

Following the launch of a network of around 3,000 superchargers that enable a full charge in less than 45 minutes, Tesla invested several billion dollars in the construction of a battery factory in Nevada to equip the Model 3. For this they had to raise around 4 billion dollars on the stock markets since 2013. It is important to note that the share price had multiplied by 11 since its quote price in 2010.

Finally, in 2017 Tesla again raised new capital amounting to 1.2 billion dollars by issuing 1.3 million ordinary shares and ceding first round convertible securities maturing in 2022.

 

What are the future possibilities for Tesla Motors?

Before taking a position on the course of Tesla Motors shares, you are probably wondering about the future of this company which has recently raised significant funds in the financial markets. For that, it is important to look at the commercial strategy put in place by Elon Musk himself.

More than 10 years ago, he launched the Master Plan, whose strategy was primarily based on the democratization of electric vehicles by leveraging on the profits generated by high-end vehicles, which would then be used to finance inferior sectors. But recently, Elon Musk has announced to the public his Master Plan 2, which specifies to investors and the press the plan envisaged by the directors of the company in the years to come.

The first thing that called our attention about this new strategic plan is a more diversified range of electric vehicles produced by the group including vehicles such as compact SUVs or pickups. We can also notice the manufacture and future commercialization of heavyweights, the Tesla Semi and of an electric bus.

In the long term, the group also announced the development of a range of autonomous vehicles with the launching of a fleet of self-driving vehicles and the possibility of sharing Tesla electric vehicles with other users when their owners are not using them. We also noticed that the takeover of the company Solar City, specialized in the installation of solar panels and created by Elon Musk cousin, himself, is an ideal solution to provide for the solar energy projects of the group, which the company had already talked about during the announcement of his Master Plan 1.

However, there are still some questions as to how these developments and projects will be financed. This is the reason why the price of Tesla Motors shares went down after the announcement of its Master Plan 2. Financial analysts estimate in fact that these projects could cost nearly 3 billion dollars to the company. It is easy to understand how the lack of data concerning the way they are going to finance those porjects, could influence investors who are doubting about their feasibility. The feasibility of this plan should therefore be closely monitored on the long term. On a first instance, we expect an increase in the cost of the company and thus a decrease in profitability with repercussions on this title on the stock market.

In addition to the money needed to carry out these projects mentioned in the strategic plan of Tesla Motors, particularly concerning the development of the SUV and the pickups, which could cost several hundred million dollars to the company, provided that they use materials already used by other manufacturers, some other projects could also pose a problem concerning the long time that it may take to manufacture them. This is particularly the case for the design of the heavyweights announced by the group which could take from 5 to 9 years to be manufactured and thus face significant competition by manufacturers specialized in this type of vehicles. If the company only relies on the sales of its electric cars such as the Model S, the Model X and the Model 3, it may encounter a significant financial shortfall and a certain delay in the realization of the projects initially mentioned.

 

How to carry out a good fundamental analysis of the course of Tesla Motors shares?

It is obvious that in order to set up a good strategy on the course of Tesla Motors shares, it is essential to use a technical analysis and a fundamental analysis at the same time. In fact, we know by experience that this title is particularly sensible to the effects of advertising and that the news also have a concrete and direct influence on its evolution.

This is why, we advise you to carefully follow all the official statements made by the company and its direction especially concerning its Master Plan 2. The reaching of the objectives fixed by the company and the means used to achieve this will be very important. You should therefore put attention to all the financing solutions used by the company, the eventual strategic alliances and of course the group’s financial results.

Once again, we draw your attention to the importance of a good study of the competition, since Tesla Motors operates in a highly coveted sector because it is considered as the future. The race for electric and autonomous vehicles has been in full swing for the last few years and Tesla is not the only company investing a lot in these innovations. Each announcement of the manufacture or the release of a new vehicle from either of these companies could have a direct effect on the direction that Tesla Motors shares could take.  

In conclusion, any important announcement coming from this sector of activity is likely to influence the price of Tesla Motors shares and represents an excellent entry point on the market with punctuated and highly volatile accentuations and trend reversals.

Invest in Tesla shares in real time:

To invest now in Tesla share prices we recommend you register with one of the most reliable online Forex market brokers. They offer you the opportunity to invest in futures contracts on this share on the stock markets.

Trade in Tesla shares now!*
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.