What is Tesla’s Vision For the Future?

What is Tesla’s Vision For the Future?

Auto, Aviation & Transportation

Tesla, Inc. overview 

Tesla, Inc., founded in 2003 by American entrepreneurs Martin Eberhard and Marc Tarpenning, is an American manufacturer of electric automobiles, solar panels, and batteries for cars and home power storage. The company name Tesla is given by Nikola Tesla, Serbian 

American Investor. The former name of Tesla, Inc. is Tesla Motors which was used from 2003 to 2017. The headquarters of Tesla is in Austin, Texas. From october 2008 to the present, the CEO is Elon Musk. In 2021, Tesla, Inc. had more than 99290 employees. Tesla’s major products are the Model Y, Model 3 (the most popular one), Model X, Model S, Cybertruck, Tesla Semi, and Tesla Roadster vehicles. 

The mission of Tesla is to accelerate the world’s transition to sustainable energy. To protect our ecosystem and save energy, Tesla has unique energy solutions, which are Powerwall, Powerpack and Solar Roof. These technologies help everyone to manage renewable energy generation, storage, and consumption. In addition, Tesla has a facility called Gigafactory 1 to reduce battery cell costs. 

Not only does Tesla care about energy saving, but also Tesla cares about safety in its factories. Tesla provides employees a multi-day training program before letting them work in Tesla factories in Fremont, California, and Gigafactory Shanghai. In addition, managers will continue to track workers’ performances to make sure that there are no safety issues. 

All things done by Tesla are only the start of Tesla’s mission, and Tesla will continually offer valuable achievements in the future.

Tesla Financial Summary 

Tesla, Inc. reported earnings results for the second quarter ended June 30, 2022. For the second quarter, the company reported sales was USD 588 million compared to USD 332 

million a year ago. Revenue was USD 16,934 million compared to USD 11,958 million a year ago. Net income was USD 2,259 million compared to USD 1,142 million a year ago. Basic earnings per share from continuing operations was USD 2.18 compared to USD 1.18 a year ago. Diluted earnings per share from continuing operations was USD 1.95 compared to USD 1.02 a year ago. 

Annual Income Statement (2018-2021)

Annual Balance Sheet (2018-2021) 

Overall, the three financial statements above reflect the growing trend of Tesla. From 2018 to 2021, the revenue increases every year. In addition, the total asset also increases.

Competitors Analysis 

1) For companies itself, there are 4 major competitors that need to be noticed, which are Volkswagen AG, Toyota Motor Corp, Stellantis NV, and Mercedes-Benz Group AG. Below is the comparison chat for these 4 companies. 

2) According to Bank of America, for EV stock, there are 7 companies’ stock that need to be considered as Tesla’s competitors, which are Rivian Automotive Inc. (RIVN), 

Lucid Group Inc. (LCID), XPeng Inc. (XPEV), Li Auto Inc. (LI), Proterra Inc. (PTRA), Ford Motor Co. (F), and General Motors Co. (GM).

Competitors Name Company Description Why Competitors?
Rivian Automotive Inc. (RIVN)an EV pure-play startup that went public in November 2021 and began delivering its first R1T electric pickup trucks in DecemberRivian is expecting to produce just 25,000 vehicles in 2022, but Murphy says the company is still one of the most viable startup EV automakers. Bank of America has a “buy” rating and $100 price target for RIVN stock, which closed at $20.60 on May 11.
Lucid Group Inc. (LCID) an EV pure play that went public via a special purposeDespite production struggles, Murphy says
acquisition company merger in July 2021.Lucid’s innovative and competitive electric powertrain technology sets it apart from competitors and makes Lucid the Ferrari NV (RACE) of the new EV automakers. Bank of America has a “buy” rating and $50 price target for LCID stock, which closed at $13.86 on May 11.
XPeng Inc. (XPEV) a Chinese EV startup targeting the mid-level and high-end segments of the market.XPeng reported 9,000 vehicle deliveries in April, up 75% from a year ago. Xpeng’s year-to-date deliveries of 43,563 and delivery growth of 136% have both outpaced top Chinese EV rivals Nio and Li Auto. Analyst Ming Hsun Lee says XPeng has generated impressive production numbers as it continues to navigate supply chain disruptions. Bank of America has a “buy” rating and $46 price target for XPEV stock, which closed at $19.82 on May 11.
Li Auto Inc. (LI) leading Chinese EV maker and was the first to sell an extended-range EV.Li has delivered 35,883 vehicles year to date, up 98%. Lee projects full-year sales growth of 92.5%. Bank of America has a “buy” rating and $33 price target for LI stock, which closed at $20.13 on May 11.
Proterra Inc. (PTRA) produces commercial EVs, EV powertrain solutions and charging infrastructure.Despite supply constraints, analyst Sherif El-Sabbahy anticipates revenue growth will ramp from 23.3% in 2021 to 33.8% in 2022 and accelerate to 121.5% in 2023. Rising costs will weigh on margins in 2022, but El-Sabbahy points to strong demand, a large backlog and funding from the U.S.
Ford Motor Co. (F) legacy automakers, devoting a tremendous amount of resources to electrifying their modelsBloomberg recently reported Ford is planning to spend an additional $10 billion to $20 billion on top of the $30 billion it has already pledged to spend on EVs by 2030. Ford recently reaffirmed its 2022 guidance, and Murphy says its reorganization into Ford Blue and Ford Model e is an encouraging sign of its commitment to transitioning its legacy internal combustion auto business.
General Motors Co. (GM) one of the Detroit Three automakersMurphy says GM is successfully offsetting headwinds from rising costs via a more favorable product mix and higher prices. Bank of America has a “buy” rating and $95 price target for GM stock, which closed at $37.27 on May 11.
Future Trend 

According to UBS, Tesla will have a bright future, and its components: semiconductors and batteries will play critical roles. Batteries will be the next “industry-wide bottleneck,” and that Tesla will outperform rivals by building cells in-house and maintaining better access to raw materials like lithium. Plus, the supply chain will allow Tesla to grow faster and more profitably than legacy automakers. “ Moreover, the bank says Tesla is in a good spot to become one of the top three global automakers by 2030. Today it’s the most valuable, but sells millions fewer cars than giants like General Motors, Volkswagen, and Toyota” (Levin, T.).

Written by Katherine (Nuqian) Tang

What is Tesla’s Vision For the Future?

Auto, Aviation & Transportation

References 

Duggan, W. (2022, May 12). Tesla Competitors: 7 Rival EV Stock to Buy. U.S. News. https://money.usnews.com/investing/stock-market-news/slideshows/upstart-tesla-competitors -to-watch 

GlobalData. https://www.globaldata.com/company-profile/tesla-inc 

Investing.com, https://www.investing.com/equities/tesla-motors-financial-summary 

Levin, T. (2022, June 9). Tesla’s future is ‘brighter than ever’ thanks to record demand and new factories, UBS says. INSIDER. 

https://www.businessinsider.com/tesla-stock-buy-strong-outlook-ubs-analysts-bright-future-2 022-6 

Schreiber, B. A. and Gregersen, . Erik (2021, September 1). Tesla, Inc.. Encyclopedia Britannica. https://www.britannica.com/topic/Tesla-Motors 

Tesla, Inc. https://www.tesla.com/about

What is Tesla’s Vision For the Future?