Tesla is easily the most popular of the electric carmakers but also probably the most controversial one. There’s almost always some announcement or the other from Tesla CEO Elon Musk about a new offering or improved feature, many of which experts and analysts believe is too far-fetched or entirely ridiculous. Regardless, Tesla has still made an indelible mark in the auto scene and might be reaping the fruits of its labor especially as the Tesla (TSLA) company’s market cap has now crossed $60 billion and is sitting pretty at $65 billion, with more analysts turning bullish towards TSLA.
Tesla recently released its new Cybetruck which was first met with disappointment as people laughed at the odd design. However, the situation quickly turned around and all the popularity seemed to cause a surge in the number of orders which Musk suggested hit 250,000 about two weeks ago. The company’s evolution has now caused many analysts, including skeptics, to re-evaluate their previous positions.
One of the biggest advantages Tesla has is its innovation. Crowned by the Cybertruck, Tesla has never been afraid to try new things, a move that is always guaranteed to pique people’s interest. CNBC’s Jim Cramer believes that one of the reasons for Tesla’s success and why he is now bullish on Tesla is the CEO. He said:
“Musk, it turns out, is a great CEO when he can get out of his own way, and that seems to be what he’s doing…If you’re going to invest in a battleground stock, Tesla’s got all the ingredients of a winner.”
Recently, Ben Kallo who is an analyst with multinational investment and financial services company Baird visited Tesla’s factory in Fremont, California. In a note to clients after the visit, Kallo said that sometime in mid-2020, Tesla would be able to produce 1,000 cars every week, from the factory. It has also been reported that Tesla’s plant in Brandenburg, Germany, has the capacity to produce more than 500,000 vehicles every year.
On Wednesday, Tesla shares closed at $352.70 after jumping almost 4% after three straight days of trading in the green, with a buy mark at $361.30 and a buy range extending to $379.36. On Thursday, the market closed with $359.68 for Tesla and at the time of writing in pre-market, the price is 0.78% higher which is $362,30. Analysts believe that TSLA is set to hit the buy point.
Another major reason there’s the spreading belief in TSLA is the fact that the company’s books are have improved. For years now, Tesla has been the target of heavy backlash from market players and analysts because of huge debts. Back in February, CNBC revealed that the company’s debt was worth a whopping $920 million and a month later, TSLA stock lost 12.5%. The company however recovered and reported a surprising $143 million net income for 2019’s third quarter, pushing its earnings per share to $1.86 disappointing analysts who expected a loss per share of 46%.
Regardless of all of its woes, Tesla has planted itself as one of the most popular in the electric space. Late last month, Statista reported that the Tesla Model 3 is the best-selling plug-in electric car in the U.S. and is also preferred by U.S. car owners in terms of technology and innovation.
As Cramer put it:
“…even the bears recognize that Tesla’s about to have an earnings breakout, perhaps as soon as next year.”
It means that the coming year may be a very successful one for Tesla.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.