Tesla Motors was founded in 2003 by Martin Eberhard and Marc Tarpenning in San Carlo, California and later attracted the attention of current CEO Elon Musk. He immediately set aside $ 7.5 million to take over the company and make it the majority shareholder. He was interested in designing vehicles and finding the means to make his dreams come true which was the production and sale of electric vehicles. Tesla stock defies the law of probability with a ridiculous $ 30 billion valuation.
The main idea beyond the scope of this article is that Tesla’s free cash flow has been a hallmark since its inception. The stock price looks pretty ridiculous. As we will see later in the valuation section, Tesla’s story is characterized by long-term negative free cash flow. In addition, the structural changes involved the development of computer software and assembly robots. The company’s growth strategy was to increase the production of the Model S, with Model X in 2015 and Model 3 in 2017.
But that’s not the only problem, and the company was having more financial problems, requiring a loan of $ 465 million from the US Department of Energy and moving the power plant to a new and better one. In the second quarter of 2010, TESLA Motors went public on NASDAQ for $ 17 per share, raising a total of $ 226 million. Jaguar (at the time in collaboration with Ford) introduced the X-Type in hopes of entering a larger market, losing much of its reputation and market share as a luxury car brand.
In 2009, Jaguar finally ditched the X-Type. From a marketing perspective, Tesla must continue to focus on building brand awareness, optimizing its cost structure and building a sales infrastructure like Apple’s. In 2009, Daimler AG bought about 10% of Tesla’s stock for $ 50 million, 40% of which was sold to Aabar Investments, a private foundation in Abdawi, a few months later.
In June of that year, the US Department of Energy granted Tesla at https://www.webull.com/quote/nasdaq-tsla an interest-bearing loan of $ 465 million that fully repaid the funds needed to develop the Model S sedan in 2013. This is different than what they have taken. According to many researchers, companies like Nissan and Ford are less vulnerable to project failure as these companies don’t think too big. However, on the other hand, the chance of getting a high return is relatively higher in the case of Tesla. You can get more information of Tesla stock from tesla stock news.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.