Tesla is an emerging company in the automobile industry that offers luxury electric cars and its footprint in the world is steadily growing. On various reports about the company Tesla, a statement about the company says, “Tesla Motors design, develop, manufacture and sells fully electric storage vehicles and storage products.” (Merchant Equity Report, 2016) With the concern about climate change and the environment more people are willing to switch to electric cars, not only to save the environment, but also because it says them money on gas. Tesla is a company that’s sole focus is on the use of electric energy and not only has projects for vehicles but also within other storage products that are electrically efficient. As Tesla continues to
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According to the Equity report, it is projected that “Tesla will perform in line with the market over the next 6 to 12 months.” (Equity Report, 2016) The earnings strength is reported to be very positive and Tesla has showed that earnings growth may occur in the future. As an investor, a positive earnings strength is important because this means that the company is successful. There have been some price fluctuations within Tesla stock though and this is normal. It is no need to cause any alarm. This is like any other stock, it follows the ebbs and flows of the Stock Market as a whole. Companies in the technology sector have “experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance or those companies.” (10k Report, 2016) This a natural part of the technology industry in total which is a large part of Tesla’s research and development. It was reported that Tesla does not see cash dividends being paid out to stockholders in the foreseeable future. (10k Report, 2016) As an investor, this may be worrisome but this just means that more money is going to be placed in the research and development field, hopefully increasing technology for their automobiles and products. This is return will create larger dividends and high …show more content…
This is something unique which will put it ahead of its competitors in the electric car industry and in the automobile industry as a whole, since most companies do not just focus on one specific type of luxury car. As well as having a luxury appeal to it, they are now catering to the masses, which will hopefully increase its popularity. Of course Tesla is not going to outrank manufactures that have been around for an extremely long period of time with multiple styles of cars. They are competing within their own range. Also, no company stars out on top and for being under 20 years old, Tesla has held its own in the industry. This means that as Tesla continues to develop within the automobile industry and as the electric car industry grows Tesla will be in a place to take one of the top ranking spots. As an investor that is what one could hope for in an investment, the likelihood of a company to become successful, as well as paving the way to a new sector in a large
According to the Equity report, it is projected that “Tesla will perform in line with the market over the next 6 to 12 months.” (Equity Report, 2016) The earnings strength is reported to be very positive and Tesla has showed that earnings growth may occur in the future. As an investor, a positive earnings strength is important because this means that the company is successful. There have been some price fluctuations within Tesla stock though and this is normal. It is no need to cause any alarm. This is like any other stock, it follows the ebbs and flows of the Stock Market as a whole. Companies in the technology sector have “experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance or those companies.” (10k Report, 2016) This a natural part of the technology industry in total which is a large part of Tesla’s research and development. It was reported that Tesla does not see cash dividends being paid out to stockholders in the foreseeable future. (10k Report, 2016) As an investor, this may be worrisome but this just means that more money is going to be placed in the research and development field, hopefully increasing technology for their automobiles and products. This is return will create larger dividends and high …show more content…
This is something unique which will put it ahead of its competitors in the electric car industry and in the automobile industry as a whole, since most companies do not just focus on one specific type of luxury car. As well as having a luxury appeal to it, they are now catering to the masses, which will hopefully increase its popularity. Of course Tesla is not going to outrank manufactures that have been around for an extremely long period of time with multiple styles of cars. They are competing within their own range. Also, no company stars out on top and for being under 20 years old, Tesla has held its own in the industry. This means that as Tesla continues to develop within the automobile industry and as the electric car industry grows Tesla will be in a place to take one of the top ranking spots. As an investor that is what one could hope for in an investment, the likelihood of a company to become successful, as well as paving the way to a new sector in a large