TESLA

Tesla Inc is an American electric-automobile manufacturing company that is listed on

the Nasdaq stock exchange since June 2010. It has a market capitalization of $416.2
billion.Tesla's initial public offering (IPO) was on June 29, 2010 and was priced at
$17 per share. The company has never paid a dividend but its share price has
gone up multifold since then.

Long-time Tesla Inc executive and president Jerome Guillen, who left the
company earlier in June, has sold an estimated $274 million worth of shares
after exercising stock options since June 10, according to a filing with the
Securities and Exchange Commission (SEC).

The departure of Guillen, one of Tesla's top four leaders, including CEO Elon Musk,
has sparked market concerns about Tesla's future vehicle programs like the Semi
electric trucks and new batteries called 4680 cells.

SHARE PRICE
660.50 USD
+14.28 (2.21%)

The price of Tesla share in Indian rupees is nearly Rs 51,000, at an exchange rate of
Rs 73 to a dollar. But, if you feel it’s a price too high, you can buy a fraction of the
share too. Owning the US stocks in Fractions is possible through Fractional
Investments

Tesla (TSLA) - shares traded lower in premarket trading on Monday after the
electric carmaker unveiled a subscription option for its Full Self-Driving package that
some Tesla drivers may have to pay an extra $1,500 for a new chip to be installed to
use.
Tesla’s Competitors

1. Nio
“Tesla” and “China” have been big buzzwords for years, associated as they both are
with potentially world-changing innovation and growth. So when a Shanghai-based
automotive startup comes along amid whispers of being “China’s Tesla”, you know
it’s worth your attention.
Founded back in 2014, NIO (NYSE: NIO) manufactures premium electric vehicles
for the international market. While its products have generally been met with critical
acclaim, the company has also developed a reputation for being risky and
unpredictable. Some commentators fear that its valuation is based on a vague notion
of “potential”, rather than its current financial performance — although perhaps a
similar charge could be made against Tesla itself.
Deliveries of vehicles were 20,060 in the first quarter of 2021, including 4,516 ES8s,
8,088 ES6s, and 7,456 EC6s, representing an increase of 422.7% from the first
quarter of 2020 and an increase of 15.6% from the fourth quarter of 2020.”
The company anticipates that Q2 deliveries will rise to between 21-22k vehicles.
Perhaps even more importantly than the deliveries growth numbers is Nio’s margin
thereon. A year ago Nio lost 7.4% on each vehicle it made. In Q1 of 2021, Nio made
a positive 21.2% margin on each vehicle sold.
Higher margins and increasing sales are a recipe for success.

NIO delivered 21,896 EVs in the second quarter, up 112% year-over-year, while it
saw its share price climb over 337% in the last 12 months. It is rapidly growing
delivery numbers and improving financial metrics have provided investors who seek
a Tesla alternative a viable option. Whether this growth can be maintained and
investor demand remains at these astronomical levels is another question. NIO is
definitely a high-risk bet, but the company’s commitment to pushing boundaries,
combined with its exceptionally low price, makes it simply too hard to write off.

2. Workhorse Group
US-based companies such as Tesla, Inc. (TSLA) and Workhorse Group, Inc.
(WKHS), which rely on China for raw materials such as lithium, as well as
manufacturing and assembly equipment.

Though TSLA brought the EV industry on the radar with its efficient and safe cars,
WKHS has been operating in this industry for quite some time now. The company is
currently involved in developing electric trucks for bulk deliveries across the country,
which is expected to be commercially launched next year. To that end, WKHS has
been shortlisted for a United States Postal Service (USPS) contract estimated at over
$6 billion, given its current progress in the production rate. Hence, even before being
completely operational, the company has created hype in the market, as investors are
expecting the stock to skyrocket upon launch of its vehicles.

TSLA reported impressive results for the third quarter that ended September 2020,
surpassing analyst expectations. Its EV deliveries increased 7% year-over-year
(subject to operating lease accounting) over this period. Revenue increased 39% year-
over-year to $8.77 billion, while gross profit rose 73% from the same period last year
to $2.06 billion. Its net income and EPS rose 131% and 69%, respectively. TSLA’s
EPS for this period beat the consensus estimate by 33.3%.
WKHS’ net sales increased 131.62% year-over-year to $564,707 in the third quarter
that ended September 2020. It is currently in the process of manufacturing electric
trucks, with a production and delivery target of 1,800 vehicles in 2021.

3. Albemarle
Albemarle is the number-one way to profit as electric cars take over US roads. Right
now, Tesla makes the best electric cars on the market. But as I mentioned, every
major car company in the world is going electric.

Picking a winner in the auto industry is extremely hard. By owning Albemarle, we

don’t have to back a horse in this race. We’ll make money whether Tesla, GM, Ford,
or BMW comes out on top.I recommended the world’s largest lithium
producer Albemarle (ALB) back in June. Albemarle controls 25% of the lithium
market and owns the purest lithium mines on the planet.
Does Tesla Have a Competitive Advantage?
As all of these competitors begin to pour into the electric vehicle market, we must
examine if Tesla has a competitive advantage and whether it can retain its dominance
in the industry:

• First-mover advantage: Tesla has been around the EV industry a lot longer than
its competitors. It enjoys brand recognition, word-of-mouth advertising, and a
much more expansive charging network thanks to its time in the market.
• Autonomous Driving: It’s estimated that Tesla has amassed roughly 2 billion
miles of data through its Autopilot driver-assist feature, each and every inch of
which has strengthened its self-driving algorithm through machine learning.
The data from which Tesla can avail of is streets ahead of Alphabet’s
(NASDAQ: GOOG) Waymo and General Motor’s Cruise.
• Battery Power: The main reason why Tesla made up almost 74% of electric
vehicles sold in the U.S. for the last three years is simple: its cars go further.
Tesla’s Model S has a range of 380 miles. Its closest competitor? The Model 3,
followed in third by the Model X. Many people call Tesla a battery company
that sells cars, with this type of dominance it’s easy to see why.

Slightly less tangible than its other competitive advantages, but no less important, is
the almost cult-like following Tesla garners. Fans of the company and the stock truly
think Tesla is on the brink of changing the world for the better, and they’re putting
their money where their mouth is as deliveries and the stock continues to soar.

Apart from production challenges, Tesla needs to find enough buyers for its cars
globally. It is the leader in electric vehicles right now. The International Energy
Agency estimates that under current policies the number of electric vehicles globally
could rise to 145 million by 2030 from around 11 million in 2020. Tesla is well
positioned to capture this expected growth.

However, legacy automakers are also rolling out electric versions of their top car
models. That could significantly amp up competition for Tesla in the coming years.
Its brand image and product features are its key strengths. Its top EV models right
now offer the longest range available.

Tesla is focused on ramping up production, removing bottlenecks, and improving

battery range. The company is working on all fronts simultaneously and plans to
expand rapidly. In short, despite competition and challenges, Tesla has the potential to
become one of the largest automakers in the coming decade.