Tesla stock prices have a tendency to bounce back quickly, but currently, this stock is in one of the longest dips in the company’s short history.
When it comes to the rollercoaster of this stock, the constant drama and polarizing impact of Elon Musk doesn’t help at all. Still, the stock price returned returns in 2023 that should continue to build some momentum through the new year. That said, investors should be aware of what they could experience with this stock going forward.
What are some strong points about Tesla?
Tesla cash flow is strong
Most mature companies don’t generate the type of cash flow that many investors in Tesla experience with their investment in this company. This company trades more often than almost every other company, with a serious focus on generating cash, which makes this a growth stock and a company that’s generally worth investing in.
Growth is the name of the game
Tesla is a growth company and one in which the managers of its finances often look for long-term growth over short-term earnings and cash flows. Most companies would be amazed to generate figures of growth like Tesla. This company could easily make 15.3% or more growth, making it mature and build on what we’ve come to expect from this electric vehicle company.
Tesla makes up at least half of the EV market in the United States. It might seem unreasonable to expect Tesla to continue to grow at a strong rate, but it could.
Sales increase also improve cash flow
Tesla is still in the early stages of its time in the automotive market. Currently, the personal vehicle lineup is comprised of four models, with the new Cybertruck beginning to take off. As Tesla expands its lineup and moves into other markets, such as commercial trucking, expect the sales increase to push cash flow upward and help make this company even stronger.
The EV market continues to impact Tesla stock price
The turn of the current decade created a strong surge in the electric vehicle market. In 2023, more than 1 million EVs were sold in America, which set a new record. That said, sales of EVs have tapered off over the past few months, which also impacts Tesla’s price in the stock market.
Electric vehicles will likely see a surge in sales or at least a strong continued growth trend upward. Current legislation dictates more than two-thirds of the vehicles sold in America will be zero-emissions models by 2032. This means a strong push for more Tesla EVs, which should increase the stock price and end the rollercoaster ride for a time.
Tesla has made many investors rich
Anyone who thinks getting in early when a company offers an Initial Public Offering (IPO) is fooling themselves. While not all companies pay off, the initial price per share when Tesla went public in 2010 was $17 per share. Today, that price is around $200 per share, but in 2021, this stock reached an all-time high of $900.40 per share. Those who got in early and found a way to cash in around when the price reached its high were able to reap the rewards of only eleven years of investing.
Could Elon Musk cause the Tesla stock price to tumble
Public sentiment is always part of the rollercoaster ride that can happen in any company, especially when it comes to stock prices. Elon Musk is one of the most polarizing figures in the public view, and he also happens to be the CEO of Tesla. This could create a few dips in the price, making some investors frustrated.
Still, the addition of new electric vehicles should help boost the stock price of this electric vehicle company. We might not see the stock reach the same high as it had in 2021, but it still offers good returns, except for those who invested in Tesla when the price was over $500 per share.
Does it make sense to buy this stock now?
The current Tesla stock price is likely more realistic than the high this stock reached a little more than two years ago. Although investing in any stock is risky and could always end in a loss of money due to company mismanagement, the EV surge is over, and most companies have leveled off. Investing in Tesla now might not provide the same returns as early investors who bought into the initial IPO in 2010, but many experts predict this stock will continue to rise over the next several months.
Will you invest some of your money in Tesla stock?
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