Tesla is one of the biggest companies with the highest value in the world today. This is why it will not be surprising to see the effect show up in their stock market price. The stock is always between an upward movement in price to dropping at the average value with respect to the company’s worth. The exciting part is that the popularity of the company and its CEO have not ceased to drive some talk in the direction of their stock in the investment market.
After hitting an all-time high, dropping and rising again, what can you think of Tesla stock? Will it go up or down? We may not be able to give the perfect answer, but a reasonable analysis can show us some important clues to knowing where Tesla stock is heading in the stock market. In the past few months, Tesla stock has experienced ups and downs, dropping from about $1,243 to $766 and currently crawling up again due to updates from the company. With all these in place, a vital question needs to be answered. Will Tesla stock keep going up even after reaching an all-time high? The answer is evident based on many reasons that there’s the possibility that the stock goes beyond the all-time high. Some of these factors are;
Record Of Earning
As it’s well known that one of the major factors that attract the market to a particular stock is the earning score of the company, there’s a chance that the stock price of Tesla stock will go up beyond the peak it has ever reached. This will be very obvious when we take a look at the company’s earnings report. Over the past months, Tesla has recorded an amazing earning figure above what anyone will expect, which means that they’re doing well. More so, right now, the rate at which they’re establishing and inaugurating new factories to ensure they have more product capacity is considerably impressive. If this shows one thing, it’s the fact that the Tesla company has more possibilities of achieving increasingly fascinating and exclusive goals in the near future. Don’t take our word for it. The expectation for Tesla stock now is nothing more than improved deliveries with the commencement of the Berlin factory, which of course, means that the market will go in favour of their stocks to keep the price soaring up the price chart in the stock market.
There used to be a saying that goes, “show me your friend, and I’ll tell who exactly you are”. This is absolutely true not only for humans but also for the company that they run. Here, we can say that the success of any company and the possible growth that can be envisioned can be significantly attributed to the performance and experience of the leader controlling it. As far as Tesla is concerned, every one of us knows the CEO, Elon Musk, quite well. He’s not only well skilled and experienced in managing the company, but he’s also brilliant when it comes to dealing with negative situations that can affect the company’s reputation and growth which can eventually manifest in the Tesla stock price. For example, he underscores the need for a humanoid robot at many earning calls to ensure that he distract the people’s attention from the ravaging news about the lateness in the launching and delivery of the Cybertruck beyond the proposed deadline. In the same way, when the Tesla factory based in Shanghai experienced a shutdown of about four days, and the news was centred on it, he announced a stock split intention so as to keep the news busy with positive reports about the company. With his attribute, there’s more possibility of Tesla stock rising in price.
The last reason behind our notion regarding the possibility of Tesla stock going up in price is the recent proposal to split their stock. If anyone will remember, this is not the first time Tesla will be doing this. They’ve also done it a time in the past. When we observe this action, we can see the likelihood that the company also wants the stock price to soar higher. Splitting does not make any actual and realistic difference in the absolute performance of the company. What it does is direct more attention to the stock and thus elevate the price level. Generally, we can conclude that the company is ready to take the necessary steps to give its stock price a reasonable raise.
Provided that all things are equal, the probability of an increase in Tesla stock is far greater than any other possibility, especially with the kind of reason we have presented to back it up. Although this might not necessarily mean a bit of advice to start buying into the stock, it does mean that based on a proper evaluation, there’s the possibility of predicting the movement of the price of a particular stock on the stock market based on investment point view.
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Recommended books for further reading:
- Smarter Investing: Simpler Decisions for Better Results
- How to Make Money in Stocks: A Winning System In Good Times And Bad
- A Beginner’s Guide to the Stock Market: Everything You Need to Start Making Money Today
- Investing Demystified: How to create the best investment portfolio whatever your risk level
- The Five Rules Successful Stock Investing: Morningstar’s Guide to Building Wealth and Winning in the Market
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