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Considering an investment in Tesla stock? Check out the most important numbers to help you decide

Jamie Cameron
27. 10. 2022
6 min read

Tesla - a company that polarizes the investment world. Some love it unconditionally and praise it to the skies. Others hate it because they see its price as exorbitant. Let's take a look at the numbers that might put this right!

Tesla leads the global automotive industry

In the race for electric cars, every detail matters because it can make the difference. And it's often the details that can give some players a distinct psychological advantage or undermine the morale of others.

For Tesla $TSLA-1.4%, the current market leader, the task is clear - to maintain its lead and increase it so that only crumbs remain for rivals who have come too late to the game. What can we say - Tesla's lead is huge. Especially in infrastructure, expansion, etc. But that's not enough for the company. It's stepping on the gas (electricity? 😛) as much as it can. The Austin, Texas-based automaker has set a goal of delivering at least 1.5 million cars in 2022 , which will be an all-time high.

Tesla will have delivered cars by 2022 - for now, that is!

The company of the insane (in a good and bad way) Elon Musk expects to deliver 20 million vehicles a year by the end of the decade. As for the huge number of its competitors fighting for second place - for them, these numbers are from a completely different universe.

For now, upstarts or wolfpackers like Rivian $RIVN-0.2%, Lucid $LCID-1.6% and China's NIO $NIO+1.4% mainly have to convince investors that they can really ramp up production - as they promise. But they will have a hard time doing that. Raw material prices have soared and supply chain disruptions persist. Most importantly, they don't have one crucial thing - a dominant position that Musk often exploits, opening doors and collaborations that are closed to the rest of the competition .

According to many experts, the competitors' products are as good, if not better, than Tesla's. But the market and the number of units sold say otherwise.

https://www.youtube.com/watch?v=aXj7YZcsank

But even the old seasoned players are trying to compete. Established manufacturers want to show they can make a smooth transition to EVs. They also want to leverage their mass production experience and shift up a gear. But what are we going to say - for a large number of brands, so far it's still been more of a joke attempt than real competition.

But that doesn't stop them from being confident. That's why some of them, such as German giant Volkswagen and US carmakers Ford $F-3.9% and General Motors $GM-2.3%, have announced ambitious production targets for the next three years. They promise to produce millions of electric cars a year - but only about a tenth of that at any one time. But they're on to something! They're taking a bite out of Tesla's market share. But even so, Tesla has dealt them a really crushing defeat. Even worse - on home soil 😱

According to official figures released on October 18, the company sold more new electric cars in Germany in the first nine months of the year than its local competitors.

Tesla recorded 38,458 new registrations between January and September, according to the German authority. This is a 48% increase compared to the same period in 2021 .

Tesla sold 38,458 vehicles. Full document here

Of course, the newly opened Giga in Berlin played a role in this. Vehicles produced here are not only delivered to other European markets, but also sold in Germany, which is one of the largest markets for electric vehicles in the world.

https://www.youtube.com/watch?v=8ZM_QPl_poQ

Mercedes-Benz and BMW both saw an increase in new registrations, but their sales are still nowhere near Tesla's level. New registrations of EVs reached 14,619 units for Mercedes, up 95% year-on-year, and 16,241 units for BMW, up 53.2% year-on-year. VW was a bit of a loser on its home turf, floundering.

But Tesla is not the only overseas brand rolling the European market. Ford has also done solidly. The group, which sells the Mustang Mach-E and E-Transit SUVs in Europe, recorded 3,580 new registrations from January to September, up 117.5%.

What about the shares?

Tesla is understandably in the red so far this year

Tesla reports a record quarter. It's also still incredibly expensive.

Musk's company released its results at a critical time when it is facing increasing competition from other, mainly Asian, automakers, high inflation and rising interest rates.

After a slump in the first quarter, Tesla bounced back to post near-record results in the third quarter. The company doubled its year-over-year profit and made a net profit of $3.3 billion thanks to a 55% increase in car sales. Further, cash flow more than doubled from the previous quarter to $3.3 billion.

Tesla continues to produce more cars each quarter and doesn't expect that to change despite broader issues. During the three-month period, the electric car giant produced 365,923 cars. However, record deliveries of 343,830 cars fell short of analysts' expectations. Despite some problems, the company managed to generate strong sales. It continues to produce more cars regardless of logistics problems.

The company's sales were probably boosted by the increase in deliveries and higher average selling prices. Longer-term growth of products such as the Model 3 continued to play a major role, as did increased production volume. However, Tesla is diversifying its business into several non-automotive areas, including solar power and telecommunications, to boost profits.

https://www.youtube.com/watch?v=DG8ImNJHeKI

Except as I mentioned in the intro - Tesla is dividing the investment world into two camps. And the results haven't changed anything either. Tesla's earnings report showed that the company has high expectations for its future, but investors seem somewhat concerned about its outlook. The company reaffirmed its commitment to accelerate production to achieve an average 50% year-over-year growth in deliveries. However, it did not offer specifics.

Last but not least, macroeconomic conditions need to be taken into account. Inflation is on the rise and interest rates are rising. Although Tesla has experienced costly setbacks in recent years, Musk said during the earnings call that demand is still strong and he sees no evidence of a possible slowdown. However, rampant inflation is a real risk to the company as it increases the cost of goods for everyone.

What about you? Are you one of Tesla's fans and investors, or do you still not find it attractive enough at the current price?

If you enjoy my articles and posts, feel free to throw a follow. Thanks! 🔥

Disclaimer: This is in no way an investment recommendation. This is purely my summary and analysis based on data from the internet and a few other analyses. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.

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