After a turbulent start to the year, the company owned by the ineffable Elon Musk has recovered and seems (once again) to be on the upswing.
But back in April, analysts were still pessimistic.The company had reported a 10% year-on-year drop in sales in the first quarter of 2024. Among the reasons for the company’s loss of valuation were the number of promotions implemented in response to growing competition and demand yet to be solidified. Tesla’s inability to launch new products quickly enough to maintain customer interest, and its lack of innovation (criticisms that we often hear levelled at another famous company, Apple, to name but one) were also cited as factors undermining investors’ confidence.
Automated trading algorithms also played a significant role in the stock’s volatility, amplifying market reactions to both good and bad news. But with Tesla stock now approaching USD 210 per share, the curve seems to have reversed, and if we are to believe the same Cassandras who predicted the inevitable downfall of the darling of automotive technology, the worst is now in the company’s rear-view mirror.
Tesla’s rise on the stock market shows no signs of abating, underpinned by Tesla’s transition into a juicy and growing robotaxi business. According to a report from Ark Invest, a Tesla share could be worth around $2,600 by 2029, an increase of more than 1000% on its current valuation.
The success of a robotaxi service could turn traditional personal transport industries upside down. If Tesla manages to capture the fruits of this transition, it would generate substantial revenues, and therefore the value of the company.
However, to do so, Tesla faces a number of challenges and controversies, including regulatory hurdles related to autonomous driving, competition from other carmakers and technology companies, and issues of production scale, reliability and safety of autonomous vehicles.
Beware, however, that rosy predictions can lead to an overvalued share, and consequently to a subsequent market correction.
Mr. Musk’s sulphurous personality, to say the least, is no stranger to the ups and downs of the company’s share price, of which he is not the founder but the majority shareholder and public face. The $48 billion salary (at Tesla’s current share price) that he is set to receive in 2028 for his work at the company – i.e. nearly $5 billion a year – has been in the news for months, causing some major shareholders to jump on the bandwagon. The salary is based on an agreement annulled by the courts earlier this year, but now under appeal.
Disclaimer:
CBD:
Qrius does not provide medical advice.
The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) outlaws the recreational use of cannabis products in India. CBD oil, manufactured under a license issued by the Drugs and Cosmetics Act, 1940, can be legally used in India for medicinal purposes only with a prescription, subject to specific conditions. Kindly refer to the legalities here.
The information on this website is for informational purposes only and is not a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or another qualified health provider with any questions regarding a medical condition or treatment. Never disregard professional medical advice or delay seeking it because of something you have read on this website.
Gambling:
As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman, and Sikkim, prohibit gambling. Land-based casinos are legalized in Goa and Daman under the Goa, Daman and Diu Public Gambling Act 1976. In Sikkim, land-based casinos, online gambling, and e-gaming (games of chance) are legalized under the Sikkim Online Gaming (Regulation) Rules 2009. Only some Indian states have legalized online/regular lotteries, subject to state laws. Refer to the legalities here. Horse racing and betting on horse racing, including online betting, is permitted only in licensed premises in select states. Refer to the 1996 Supreme Court judgment for more information.
This article does not endorse or express the views of Qrius and/or its staff.