Investing in Tesla Stock (TSLA)

Tesla Inc. (TSLA), the world’s largest automaker by market value, designs, builds and markets fully electric vehicles (EVs) and energy generation and storage systems. The company also provides services through vehicle maintenance centers, body shops and charging stations. Tesla manufactures and sells midsize sedans, full-size sedans, and compact and midsize sport utility vehicles.

Tesla was founded in 2003 as Tesla Motors by Martin Eberhard and Marc Tarpenning. Elon Musk invested in the company and became its chairman the following year. A settlement of Eberhard’s lawsuit against Musk after Eberhard was ousted as CEO saw the two men call themselves co-founders, along with Tarpenning and early recruits Ian Wright and JB Straubel. The company was founded as a manufacturer of electric vehicles and related components and later expanded into energy generation and storage products. Tesla went public in an initial public offering (Initial Public Offering) on June 29, 2010.

In 2021, Tesla moved its headquarters to Austin, Texas from its longtime home in Palo Alto, California. Musk is the CEO of Tesla. Tesla shares are grouped with the Consumer Discretionary sector for investment purposes. from Tesla main rivals include established automakers such as Ford Motor Co. (F) and General Motors Co. (GM), as well as fast-growing new electric vehicle manufacturers like Lucid Group Inc. (LCID) and the Chinese company NIO Inc. (NIO). In fiscal 2021, which ended December 31, 2021, Tesla posted net income of $5.6 billion on revenue of $53.8 billion.

Key points to remember

  • Tesla designs, builds and sells electric vehicles, as well as energy generation and storage systems.
  • Tesla’s rivals include major automakers such as Ford Motor Co. (F) and General Motors Co. (GM), as well as burgeoning electric vehicle manufacturers like NIO Inc. (NIO).
  • In fiscal 2021, which ended December 31, 2021, Tesla posted net income of $5.6 billion on revenue of $53.8 billion.
  • On April 2, 2022, Tesla announced that its vehicle deliveries in the first quarter of 2022 had increased by 68% compared to the previous year.

Recent Tesla Developments

  • On April 20, 2022, Tesla reported first-quarter 2022 net income of $3.3 billion, a quarterly record that beat Wall Street estimates, as revenue jumped 81% year-on-year to $18.8 billion.
  • On April 2, 2022, Tesla announced that it delivered 310,048 vehicles in the first quarter of 2022, up 68% from the previous year.
  • On March 28, 2022, Tesla disclosed stock split plans, subject to shareholder approval increasing the company’s authorized number of shares at its 2022 annual meeting. It did not specify a date. nor ratio for the expected split.
  • On March 22, 2022, Tesla officially opened its German plant near Berlin, complementing auto assembly plants in Shanghai, Texas and California.
  • On Dec. 28, 2021, Musk disclosed Tesla stock sales totaling $16.4 billion since early November, or nearly 10% of his stake in the company.
  • On December 1, 2021, Tesla said it had completed the move of its headquarters to Austin, Texas, where the company’s brand new auto plant began production at the end of the year.

What’s going on with Tesla’s recalls?

Tesla has issued several vehicle recalls in recent months. On April 12, 2022, the company announced a recall of 594,894 vehicles, including Model Ys, Xs, and Ss manufactured in 2020-2022 and Model 3s from 2017-2022, to disable the Boombox feature when the car is not not parked lest she drown. pedestrian warning signals. On February 1, 2022, Tesla announced the recall of 817,143 vehicles, including 2021-2022 Model S and Model X, 2017-2022 Model 3 and 2020-2022 Model Y, because the audio reminder to fasten seat belts may not work as well. obligatory.

What’s going on with Tesla’s Cybertruck?

On August 7, 2021, Tesla has announced that its electric pickup truck, the Cybertruck, won’t be released until 2022, after originally slated for release in late 2021. The truck has been hampered by design issues, as well as pandemic-related supply chain issues. On April 7, 2022, Musk said the Cybertruck would debut in 2023 and be assembled at the company’s recently opened factory in Austin, Texas.

What’s going on with Tesla and Bitcoin?

On May 12, 2021, Musk announced on Twitter that Tesla would stop accepting bitcoin payments for its vehicles, citing concerns about “the rapid increase in the use of fossil fuels” for bitcoin mining and transactions. On June 13, 2021, Musk tweeted that Tesla would accept Bitcoin again when around 50% of its mining was done with clean energy. On July 21, 2021, Musk gave more details at a conference about when Tesla will accept Bitcoin. The CEO said the company would “most likely” start accepting Bitcoin again, pending due diligence to confirm that the percentage of renewable energy used to make Bitcoin is “at or above 50%” and on a trend to rise.

What’s going on with Tesla’s car radar?

In May 2021, Tesla announced that it would no longer include radar sensors on its Model 3 and Model Y cars manufactured for sale in North America. The decision caused Consumer Reports to drop its “Top Safety Pick+” designation from the Model 3, and the National Highway Traffic Safety Administration (NHTSA) said vehicles without radar would no longer be checked off for a number of categories, including dynamic braking assistance. Consumer Reports and the Insurance Institute for Highway Safety (IIHS) restored their highest safety ratings for Tesla Model 3s on June 29.

What’s going on between Elon Musk and the SEC?

In September 2018, Tesla and CEO Musk settled a civil suit for securities fraud supported by the United States Securities and Exchange Commission (SEC). As part of the settlement, Musk resigned as chairman of the board and the company agreed to corporate governance reforms, other changes and a total of $40 million in fines for Musk. and society. The SEC had alleged that a Twitter post from Musk outlining Tesla’s privatization plans “actually lacked adequate basis.” The SEC also accused Tesla of “failing to implement required disclosure controls and procedures regarding Musk’s tweets.”

On June 1, 2021, The Wall Street Journal reported that Musk twice violated a court order requiring all of his tweets to be pre-cleared by Tesla lawyers. On March 8, 2022, Musk filed a lawsuit to end the SEC’s settlement condition requiring company attorneys to approve his tweets containing material business information, alleging it infringes on his freedom of speech. . On April 14, 2022, Musk called SEC regulators “bastards” for bringing the charges settled in 2018.

What’s going on with Tesla shareholders’ lawsuit over Solar City?

On July 12 and 13, 2021, Musk testified in lawsuit filed by Tesla shareholders. The plaintiffs alleged that he used Tesla’s 2016 acquisition of SolarCity to bail out SolarCity while chairing the boards of both companies. Final arguments in the case took place in January 2022, with plaintiffs’ attorneys arguing that Musk should return the Tesla shares he received for his SolarCity stock, valued in January 2022 at $13 billion. A decision in the case remained pending as of April 21, 2022.

FAQs

Has TSLA ever split its stock?

Tesla split its stock once. Effective August 31, 2020, it executed a 5-for-1 common stock split. As noted above, the company plans to seek shareholder approval to increase the number of authorized shares in order to proceed with another stock splitno date or report yet specified.

Does TSLA pay a dividend?

No, it does not pay a dividend.

How many TSLA shares are there?

Tesla had approximately 1.13 billion shares outstanding in the first quarter of 2022.

Who is the CEO of Tesla?

Tesla’s CEO is Elon Musk. Musk made a significant early investment in the company the year after it was founded. Under his leadership, the company has grown from a loss-making startup to a large, profitable automaker and a global leader in electric vehicles. He served as chairman of the company’s board of directors until his resignation as part of a settlement with the SEC in 2018. Musk became CEO in October 2008.

What positions does Elon Musk hold at Tesla?

In addition to the title of general manager, Elon Musk received the title of “Technoking of Tesla” in 2021.

Who are Tesla’s main shareholders?

As of December 15, 2020, The main insider individual shareholders of Tesla are Kimbal Musk, Zachary Kirkhorn and Jerome M. Guillen, and its major institutional shareholders are Elon Musk, Susquehanna Securities and Capital World Investors.