3
and Model 3. These models are electric sporty vehicles with luxurious features, also
the lowest-priced models on their vehicles.
Tesla's sales and revenue have constantly increased since its incorporation as
a public company in 2010. However, over the past 1-2 years, the company's revenue
and stock price have been extremely volatile on the stock market resulting from
different economic events such as interest rates announcements and unemployment
data releases. Additionally, despite the effects of the Covid-19 pandemic, Tesla
generated over $31.54 billion in annual revenue, a 28.31% increase from 2019 when
the pandemic began (Forbes, 2023). These statistics indicate that Tesla is one of the
fastest-growing companies in the world.
For investment purposes, the company's stock appears under the consumer
discretionary sector, with its competitors being Ford Motor and General Motors. Tesla
has the largest market share because of its diversification and improvement over the
years compared to its competitors (CNBC, 2023). The company incorporates new
technology, such as digital payment methods using cryptocurrencies. In general,
Tesla is one of the best-performing stocks on the US stock exchange that investors
can invest in.
Discussion
Tesla has proven to be one of the best-performing companies globally over
the years. As a result, its stock is one of the most traded stocks on the US stock
exchange market. However, companies face numerous risks that can catalyze a
drop in the stock price. In the same way that various fundamental factors cause the
stock's price to rise, the same fundamental factors would cause it to fall. For
instance, during the Covid-19 pandemic, many companies shut down some of their
operations in areas adversely affected by the pandemic (CNBC, 2023). Shutting
