Investing in Tesla 2023-Revision

1 Investing in the Tesla Corporation Student Name Course title Instructor Date
2 Preliminary memo elements: To: From Date: Re: Investing in the Tesla Corporation Introduction When carrying out an investment, investors often aim to invest in a stock whose company grows and performs well over time. There are numerous stocks worldwide, which gives investors a challenge when choosing what stock to invest in. This report provides a background of Tesla Corporation, an analysis of the benefits and risks of investing in Tesla, recommendations of what investment clients should do, and a recommendation of areas for further research. Background Tesla is a revolutionary automotive manufacturing corporation that has traded on the stock market since 2010 ( Reiff, 2022) . The corporation is well-known for producing electric vehicles and providing vehicle services such as vehicle services, vehicle body shops, and charging stations. Tesla manufactures and sells mid-size, full-size, and other sporty utility vehicles. Martin Eberhard and Marc Tarpenning founded the corporation in 2003, and first named it Tesla Motors ( Reiff, 2022) . The company first became public on June 29, 2010, when it allowed members of the public to purchase its shares. Tesla Corporation began manufacturing and selling the Tesla Model S, their first electric luxury sports sedan ( Wu, 2023) . They manufactured and sold the Tesla Model S for a few years and then diversified further to produce the Tesla Model X
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
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