11 Reasons Why You Should Own Tesla Stock

Is it a good idea to buy Tesla stock?

We believe 2020 is a good time to buy and own Tesla stock. The market is taking the Coronavirus situation very negatively, and Tesla stock has been affected by a reasonable size.

Owning Tesla Stock in this very difficult period plagued by highly contagious coronavirus, that has infected over 78000 people worldwide, killed over 2500 people, spread to more than 40 countries all around the world, is a no brainer and a safer investment.

According to experts, when a solid company stock price falls due to short term volatility, it is always a good time to start to buy such stock little by little, while the correction last.

Coronavirus has successfully wiped out over a trillion dollars from the financial market within the past 4 weeks. Dow Jones futures, S&P 500 futures, and the Nasdaq future are nosediving as the CDC said there is a U.S. coronavirus of possible unknown origin, raising fears that the virus is beginning to spread in America.

Yesterday, U.S. President Donald Trump spoke on the coronavirus crisis in a live session. Microsoft warned it’ll miss sales targets due to the coronavirus, following warnings from Apple and Mastercard last week about a possible First Quarter earnings miss due to coronavirus.

Why is Tesla a good stock?

Tesla rallied massively after the electric car maker posted a profitable third quarter earnings in 2019, beating all analysts estimates. Tesla Stock price closed 2019 at all time high, after bottoming out in May 2019 around $178 in a massive sell-off that was triggered by FUDs and negative media reports. We believe Tesla is a very good stock to buy and own.

A $1000 investment in Tesla bought at $178, would be worth over $4000 at today’ opening.

This Is Why Tesla Stock Is A Must Own In 2020

  1. Tesla Model Y Delivery Starts Next Month “March 2020”
  2. Tesla Giga Berlin Construction Begins: The facility was officially announced by Tesla CEO Elon Musk on 12 November 2019 at the Das Goldene Lenkrad award show in Berlin and is set to produce batteries, battery packs and powertrains for use in Tesla vehicles. It will also serve for assembly of the Tesla Model Y, which was announced in March 2019. Construction of the facility has already begin since last month, with a proposed start of production in late 2021. Musk also announced the establishment of a new design and development centre in nearby Berlin. We believe this factory may be completed before end of the year if everything goes perfectly fine, and production of Tesla Model Y will begin early next year.
  3. Tesla Model 3 Is Sold Out For Q1 2020: According to Tesla.com, only buyers in the USA can have their Model 3 delivered within the next 5 weeks, if they order it today.
  4. Tesla Giga Buffalo Is Almost 100% Owned By Tesla: According to the empire state development chairman Howard Zemsky, Tesla Informed them that they have exceeded their next hiring commitment in Buffalo, New York. Tesla now boast of over 1500 jobs in Buffalo, excluding the Panasonic positions. Panasonic decision to put a hold on the agreement between them and Tesla also wouldn’t affect Tesla.
  5. Tesla Project Roadrunner: This is more like a leak and rumor. According to Electrek: it started with the acquisition of Maxwell, a supercapacitor manufacturer with some battery cell technology, and later, at its annual shareholder’s meeting, Tesla all but confirmed that it’s going to manufacture its own battery cells. Electrek said they have learned more about the Tesla’s secret project “Roadrunner”: applying “the machine that builds the machine” strategy to produce cheaper battery cells on a massive scale. $100 per kWh has been described as the price target for batteries to enable electric vehicles to reach a price parity with gasoline cars without subsidies.
  6. Tesla Battery Day: Tesla CEO Elon Musk said the company is preparing to host a Battery Day for shareholders sometime after the first quarter, possibly 20th of April. The announcement came during the earnings call following Tesla’s release of its Q4 2019 earnings. Everybody in the auto industry (all tesla rivals) and most importantly Tesla investors can’t wait till April.
  7. Tesla Competitors Are Having Battery Supply Problems: Volkswagen is having a serious batter supply and software problem. Volkswagen has long-term contracts with a number of battery suppliers as the company starts its massive push into electric cars, but it’s finding those suppliers need a little extra convincing when it comes to the potential of manufacturing batteries for its EVs. Volkswagen is still struggling with “massive” software problems with its ID3 compact electric car, according to a German business magazine. The software glitches may force to abandon the EV’s planned sales launch in summer, Manager Magazin reported.
  8. SpaceX
  9. Tesla Solar Roof: While most Tesla Inc. Stock analysts are super focused on Tesla car deliveries, and bearish analysts are likely expecting Tesla 2020 first quarter earnings to miss, Tesla CEO Elon Musk is taking the Solar side of the business to another higher level.
  10. Tesla Power Storage Battery Pack For Big Cities: In 2019, Tesla CEO Elon Musk said the company’s solar and energy storage business will grow faster than its electric vehicle business. Musk claims Tesla is poised for “the really crazy growth for as far into the future as I can imagine. It would be difficult to overstate the degree to which Tesla Energy is going to be a major part of Tesla’s activity in the future,” he said. Tesla’s massive battery is powering over 30,000 homes in a remote part of South Australia. consumers have saved more than $50 million since the battery system went live in 2018.
  11. Elon Musk Is Alive, Health, and Very Very Happy: Unlike the Musk of 2017 – 2018, when Tesla was having several problems from Battery Supply, to production plants expansions, to delivery ramping, Tesla CEO Elon Musk of today appears to be a very happy man. Check out one of his most previously shared tweet below :D.

Thanks for taking your time to read. Feel free to share your opinion with us in the comment section.

“Tesla Is Absolutely The Leader” – Consumer Reports

Jake Fisher is the senior director of automotive testing at Consumer Reports. According to him, Tesla is absolutely the leader whenever it comes to electric vehicles motors and batteries.

“It’s not just that Tesla is making good, energy-dense batteries. They are also maximizing efficiency through aerodynamics, reducing weight, and refining equipment. They’re even using a different kind of chip that maximizes the transfer of energy within their vehicles’ electrical systems. It all adds up to lower energy consumption and less charging for consumers. ” – Consumer reports adds.

Tesla batteries are so good that, Tesla is making use of the 100% capacity of the battery, unlike other electric car manufacturers that are using just 90% of their battery capacity. Charging batteries to less than 100 percent makes them last longer, according to Sam Abuelsamid, an automotive technology analyst with Navigant in Ann Arbor, Mich. That is battery function that Tesla allows owners to use, the function is known as Extended Range Mode.

“They’re able to get more miles out of each kilowatt-hour. They have shown the way for EVs. They’ve demonstrated that if you do this right, there are people who will want to buy it.” – Sam Abuelsamid

The Higher The MPGe, The Cheaper You Pay For Electricity

  • Model 3: 130 MPGe
  • Model S: 102 MPGe.
  • E-Tron: 74 MPGe
  • Jaguar I-Pace:  76 MPGe, l
  • Model X: 87 MPGe

“Tesla is also the only automaker using silicon carbide chips, which save energy by efficiently converting AC power to DC to power its electronics. Most other automakers will be adopting these kinds of chips, but Tesla got there first. They’re about 6 percent more efficient than the alternative silicon chips used by other EV manufacturers. ” – Abuelsamid

Tesla Ramps Up Solarglass Roof, Against First Quarter Earnings

While most Tesla Inc. Stock analysts are super focused on Tesla car deliveries, and bearish analysts are likely expecting Tesla 2020 first quarter earnings to miss, Tesla CEO Elon Musk is taking the Solar side of the business to another higher level.

Tesla CEO Elon Musk has been tweeting almost daily about Tesla Solarglass Roof. Tesla is ramping up installations of its solar tile roofs in the San Francisco Bay area and will eventually roll out to Europe and China, according to CEO Elon Musk, who, in a series of tweets, provided the first substantial update since the company launched the third iteration of its product in October.

According to Musk, Tesla is presently working on many Bay Area installations and expansion into Europe and China is Tesla’ top priority at the moment.

Tesla will be announcing more about Solar tile roof expansion into China and Europe very soon, according to CEO Elon Musk.

I think Tesla analysts are in for a wild ride come Q1 report. Most analysts are focused on the Q1 car deliveries number.

One analyst from RBC Capital with a price target of $530, Joseph Spak, says:

“The point of this exercise is really to show how much is currently embedded in the current stock price, and how much higher the assumptions would need to be in order to justify adding at these levels, on a fundamental basis. If you believe these are achievable, you should consider the stock”.

While another analyst from Barclays, Brian Johnson, recently raised the price target on Tesla to $300.00 (from $200.00) while maintaining a Underweight rating without any further explanation for his targets.

Tesla CEO Elon Musk last year said the company would begin installations in the “coming weeks” and that it hopes to ramp production to as many as 1,000 new roofs per week. He also once said: “version three is finally ready for the big time.”.