Visualizing the incredible market growth of Tesla over the past 17 years
The pioneer in Electric Vehicles has seen astronomical growth this year, becoming the most valuable carmaker in the World
Tesla has defied all odds and critique over the years to become the most valuable car company in the World. Only till recently, the company’s stock was the most shorted one among all others and perhaps this is one of the reasons behind its astronomical rise this year — as these short-sellers scrambled to cover their positions.
To be fair the visionary CEO of the company Elon Musk has guided the futuristic Electric Vehicle (EV) company through some rough times coming true with his innovations, combined with his theatrics. The current long term uptrend started in May. 2013, with 2020 being the game-changer. Although the chart shows the stock price @ $2049.98 as of Aug. 21, 2020 — it stands at $2153.17 at close on Aug. 25, 2020.
The infographic above shows the market journey of the company over the past 17 years since its inception. Given below is a brief timeline of the company and how it got to where it is today.
🔸The company, originally called Tesla Motors, was founded in 2003 by engineers Martin Eberhard and Marc Tarpenning in San Carlos, California — with vision to produce an entirely electric car.
🔸Eberhard served as its CEO and Tarpenning served as CFO initially. Although Elon Musk became the Chairman of Board of Directors of the company in 2004 after investing $30 million, it wasn’t until Oct. 2008 that he took over as the CEO. The change in guard took place amid some controversy.
🔸In March of 2008, the company produced its first car by the name of Tesla Roadster (an entirely electric car), whose prototype was first unveiled in 2006.
🔸To address its short-term capital requirements and capital squeeze, the company went public in 2010 — opening on the NASDAQ at $17 a share, raising $226 million in its IPO.
🔸The first few years were boring as the company’s stock price stayed in the $20-$40 price range. It wasn’t until May 2013, when we started to see the stock move as the company posted the first quarterly profit — after Model S hit the production lines in 2012.
🔸 To address the supply chain issues, Tesla announced its Nevada Gigafactory in 2014, where the company now manufactures the batteries for all of its products.
🔸 Despite a growing base of skeptics, supply shortages and publicity stunts, the comany continued to grow and innovate — like Model X in September 2015 and the Model 3 in June 2017.
🔸Tesla enters the solar power market — announcing plans to buy SolarCity in Jun. 2016. The endeavor was aimed at powering homes and businesses based on a combination of solar panels and batteries.
🔸First Model 3s — Tesla’s first sedan aimed at a mass market begins delivery in Jun. 2017. The same year Tesla Motors changed its name to Tesla, Inc. which remains the company’s name to this day.
🔸 2018 & the first half of 2019 was a turbulent year and half for the company. First, Musk got into trouble with the SEC after he announced on Twitter that he is taking the company private @ $420/stock. Eventually, he ended up paying a fine of $20 million to SEC along with stepping down as the Chairman of Tesla’s Board of Directors.
🔸 2019 gave a real scare to the Tesla bulls — after opening at $310.12 on Jan. 1 and reaching a high of $347.31, Tesla’s stock price dropped considerably. It reached a low of $178.97 in June of the same year before rebounding.
🔸 Nov. 2019 saw the unveiling of the futuristic-looking Cybertruck — an electric six-seater pickup truck., enabling the company to move past its previous high in stock price and starting 2020 on a high note.
🔸 Tesla started the year on big news that the company had supassed Ford to become the most valuable US carmaker in January and in the summer, it overtook Toyota to become the most valuable carmaker in the World.
🔸 Price-wise, on the wave of a strong fiscal quarter and analyst upgrades Tesla reached $900 before the company stock hit a bottom on March 18 with the ensuing pandemic, when it closed at $361.22. Ever since then, it has made an eye-popping comeback along with other big tech companies.
The latest high catalyst includes the market’s optimistic reaction to the news of Tesla’s 5:1 split coming on August 28, which means the share price would be much more affordable for everyone, apart from current investors’ holding of shares to increase by five times.
Nothing in the market keeps going up forever. Perhaps sensing a healthy correction Musk has already sounded concern that Tesla’s price is too high, with its current penetration and the performance of the broader economy. The question is not if but when will this meteoric rise be adjusted downward.
