The technical analysis by analysts is neutral/bearish for the coming days.
Tesla Inc. Performance Chart
|(07 May’21)||vs 06 May’21)||Previous Week||Previous Month||Previous Year|
Tesla Support and Resistance Predictions
Tesla Stock price Prediction: MONTHLY VEHICLE REGISTRATION DATA
Even amidst a widespread pandemic and slower economies, Tesla seems to be on a roll in the automobile sector. The automaker recorded an 18% rise in new vehicle registrations in January from the same month a year earlier. Registrations in the period November 2020 to January 2021 jumped 45% in the North American market. With its ever-growing popularity, Tesla surpassed Audi, becoming the fourth largest luxury car brand in the United States.
The second-hand market also seems to be treating Tesla favorably with used car registrations growing to a whopping 70% YoY and 62% in the past three months, according to Experian. Tesla registered 4,505 used cars in January, nearly double the number of 2,656 registered in the same period last year.
|New Vehicle Registrations (USA)||Growth % (YoY)|
|January 2021||23, 974||18%|
Tesla Inc. maintains a steady hold on the EV market in China, with new vehicle registrations reaching a record high last month.
34,635 new registrations were recorded in China in the month of March, according to data from state-backed China Automotive Information Net. Rising to thrice the number of registrations from March 2020 and almost double the number from February 2021, China became the fastest growing market for the EV giant.
|Monthly Registrations (China)||Growth % (MoM)|
Tesla Stock price Prediction: FINANCIAL PERFORMANCE
Free cash flow
An important determinant of financial stability for a company, Tesla’s free cash flow jumped to 1.9 billion U.S. dollars in the fourth quarter of 2020, a massive leap from the negative 921 million FCF in March 2020 and 1.4 billion in third quarter of 2020.
|Free Cash Flow||Growth % (QoQ)|
|Q4 (2020)||$1.9 billion||35%|
|Q3 (2020)||$1.4 billion||234%|
Tesla Stock price Prediction: Quarterly performance
Tesla kicked off the first quarter of 2021 with 1,84,800 vehicle deliveries. This marks an increase of about 2.2% sequentially and 109% year-over-year. These numbers showed promise, keeping in mind the semiconductor shortage in the automotive industry and the shutdown of Tesla’s Fremont facility for two days in February. Model 3 and Model Y deliveries grew by almost 140% year-over-year to 182,780 units, driven by faster sales in China.
|Vehicle Deliveries||Growth % (YoY)|
Aided by a fourth quarter that brought in $270 million in profit on $10.7 billion of revenue, Tesla finished 2020 with a $721 million in profit on $31.5 billion in total revenue. The company achieved a milestone of a full year profit for the first time in 2020.
|Total Profit||Growth % (YoY)|
|Q4 (2020)||$270 million||157%|
|Q4 (2019)||$105 million||-25%|
Tesla Stock price Prediction: CORPORATE ACTIONS
Regulatory credit sales account for a major chunk of Tesla’s billion-dollar revenue. In the fourth quarter of 2020, Tesla’s revenue from regulatory credits was $401 million. This is up from $133 million in the fourth quarter of 2019, but in line with the prior quarter of $397 million.
Led by the crypto-enthusiast CEO Elon Musk, Tesla holds investments worth 1.5 billion USD in Bitcoin. In a much appreciated and profitable move, Tesla released the option of paying for their cars through Bitcoin. Orders for new Tesla cars can now be secured with the equivalent of a $100 deposit in Bitcoin.
Tesla aids their customers by offering financing, starting from 2.49% APR for terms between 36 and 72 months. The company also offers leasing terms for 24 or 36 months, depending on the model.
Tesla Stock price Prediction: Government incentives
While the EV market is laden with incentives from executive authorities, every new administration brings new incentives for hybrid and plug-in electric vehicles. The Biden administration proposed allocation of $174 billion for the development of the country’s electric-vehicle ecosystem. This, combined with the federal tax credits given under the Energy Improvement and Extension Act, reassures the market of brighter and more profitable days ahead.
Tesla recently came under increased pressure in China from regulators and state media after the Shanghai Auto Show witnessed a heated protest by an aggrieved customer over mishandling of complaints about malfunctioning brakes in the cars. The incident led to the company issuing a rare apology and launching a review into its service operations in the country.
Tesla has been the centre of scrutiny in the United States, following the fatal crash of a Model S in Houston that was apparently ‘not being driven by either passenger in the car’. The crash has cast a new light on the safety of semi-autonomous vehicles and the nebulous U.S. regulatory terrain they navigate.
In keeping with its expansion of the supercharger network, Tesla released an updated map for the new locations of superchargers to look out for in 2021.
Tesla Stock price Prediction : Competition performance
It is no surprise that the EV market doesn’t work on a monopoly. Tesla faces serious competition from companies like Ford, Volkswagen, BMW, Kia and Hyundai, all of whom are looking to enter the electric vehicle arena.
Last month, Volvo confirmed EVs will account for 100% of its vehicle sales by 2030. Auto giant General Motors estimates to increase its all-EV fleet to 30 models by the end of 2023. It plans to offer only light vehicle EVs by 2035 while Ford now expects to sell only EVs in Europe by the end of this decade. In addition, Volswagen announced plans to develop six battery factories in Europe.
EVs like the 2021 Mustang Mach-E, GMC Hummer EV SUT, Volkswagen ID.4 and Volvo XC40 Recharge are up to give some much needed competition to Tesla in the eco-friendly transportation sector.
Tesla Stock price Prediction : Diversification policies
Tesla has announced plans for diversification into countries like India, that may prove to be an immense market for the automaker. The company has been in talks with the Indian administration and is expected to begin operations in the country by the later half of 2021.
The company also expects to expand the reach of its ever-so-famous Gigafactory for battery and vehicle production. With well-established Gigafactories in Nevada, New York and Shanghai, the expansion will lead to similar factories being developed in Berlin and Austin.
Tesla Stock price Prediction : Battery Production
At the moment, Tesla partners with Panasonic for the production of its vehicle batteries. The Gigafactory in Nevada produces Lithium-ion batteries, with the 2020 target of 35 gigawatt-hours per year of cells as well as 50 gigawatt-hours per year (5.7 MW) of battery packs. This production could be equivalent to supplying 500,000 Tesla cars per year
In home-powered solar batteries, Tesla competes with LG, Orison, Sonnen, SimpliPhi Power, and Sunverge. In electric grid energy, the contenders include Strata Solar, AES, and NextEra.
Author: Tripti Neb
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