Thanks to its determined CEO, Elon Musk, Tesla (TSLA) is a bumper stock with the most incredible stock market success story up in time. The story’s outline is how Tesla, the electric car company on June 29, 2010, went public with just $17 per share. And today, as of March 2021, it has a market cap of $649.71B, which is a remarkable value less than a decade later.
Today Tesla has positioned itself as the overlord of electric cars, renewable energy, and various other sectors. The stock has surged more than 20,000% since it went public. The question that investors are bustling around is will Tesla hit the bumper in 2021?
Could Tesla be a millionaire-maker and turn a modest investment today into some wealthy million dollars in the future? Maybe diving a bit deeper into Tesla’s current market and plans will facilitate a clear-cut clarity in this.
Tesla’s Successful Rally
As of March 17, 2021, Tesla has a market cap of 627.74B, and it has hit an all-time high of $883.09 on January 26, 2021. One of Tesla’s greatest earnings is its record number of production and deliveries in 2020 amidst the pandemic. As per record, there was a recorded delivery of almost 499,647 products worldwide. If this growth continues throughout 2021, Tesla could be a valuable millionaire stock.
With an increase in its sales in China, shares of Tesla surged 14% on March 9, 2021. It has sold almost 18,318 China-made vehicles in February, a remarkable up from January’s number of 15,484. This has successfully added $75 billion to Tesla’s market capitalization.
Tesla has never offered dividends in the past is yet another positive note for the increase in its value. Even in the near future, it has no plans to offer dividends. This indicates that over time, its shares are most likely to appreciate value. Given this, there is a good chance that Tesla could provide a good return for its investors in the future.
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The Volatility Of Tesla (TSLA)
Currently, Tesla has a share price of 673.08 USD. Share price, in general, is a measure of the value of the company amidst the stock market and public. To analyze whether Tesla could be a millionaire-maker stock, one has to assume that it paused issuing its shares and each of its $500 shares increased in value to $16,000. There will be a remarkable surge in its market cap!
Calculations state that Tesla has to become the largest company in the world to be a millionaire-maker, with such a market cap. Also, to get an annual net income double to Apple’s (with the largest market cap), it might have to sell nearly as many vehicles at a luxury price. And this has to be done with profit margins that were more than double its competitors. This is just an assumption and, in reality, is a massive plan that is impossible any time soon.
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Looking On The Positive Side
This evaluation doesn’t mean that Tesla’s stock value is stagnant or will never see an increase, rather, just not at a faster pace. But on the positive side, Tesla’s investment in solar installation and energy storage technology will sky-rocket its value in the market. It could largely benefit from this, turning Tesla into a widespread electrical tech company than merely a car company.
Despite all its recent drop, the stock is up about 20.5% in 2021. Investors are betting that 2021 could indeed be yet another flourishing year for the electric vehicle maker, Tesla. Its remarkable rally throughout the year along with its recent inclusion in the S&P 500, are driving in a new wave of institutional and retail investors.
The management has also announced that they are continuously working on their production lines. By 2029, the auto sales of Tesla will grow from a half-million to an annual selling rate of 3.6 million light vehicles.
So, Could Tesla Be A Millionaire-Maker?
Though Tesla is pricey, rich, and valuable stock, it is also a highly volatile stock. Being in the automobile industry, Tesla is prone to risks like supply chain disruptions, regulatory battles, production delays, etc. But against all odds, with a successful history of high production amidst the pandemic and further changes, it seems to be paving its way to success. However, Tesla could be a millionaire-maker in the coming future, and it is best to invest in any stock always with detailed research.