Whether you admire Tesla or not, it is very hard to ignore the tremendous accomplishments made by the company in such a short period. Elon Musk, the owner of Tesla Inc., has disrupted the peace of vehicle company owners by his success and conviction to move ahead in mere two decades.
The electric car maker company’s shares have gone up to almost 860%; still, is it worthy enough to buy Tesla stock? The share price keeps on witnessing ups and downs; would it be an intelligent move to buy Tesla stock? Yes, it seems so as the financial experts and analysts predict that Tesla stock would crush the market in the forthcoming years. Here is why:
Relentless innovation of Tesla
Under the supervision of Elon Musk, Tesla keeps on progressing in terms of technology and cost-efficiency. Currently, the Tesla battery costs $187 per kilowatt-hour; making it 10 times cheaper than the nearest competitor and 24 times overall cheaper in terms of the average of the industry. Currently, Tesla is selling only EVs (electric vehicles) which are meant to exceed the 400 miles’ mileage. In simpler words, the batteries of Tesla vehicles cost less but go way farther than their competitors.
Tesla introduces 4680 battery cells in 2020, which was a total game-changer in terms of technology. It is built on an innovative design of tables which is expected to cut the battery cost to another 56% – widening the lead of Tesla in the electric vehicle industry.
The company management believes that 4680 will boost the car’s range to another 54% while reducing the expenditure by 69%. This will be a great achievement in terms of spending less on the equipment and the plants while producing batteries which are giving better range at a lower cost.
Hypothetically, Elon Musk aims to build electric cars in the range of $25000 in the coming three years; no competitor can come even near to this theory; helping Tesla maintain and grow its market share.
The pursuit of uber efficiency
Elon Musk has stated on different occasions that the long-term advantage of Tesla is its manufacturing, and the company has made a great effort in the pursuit of obtaining uber efficiency in a short period.
Tesla introduced the 2170 battery cell which boosted its energy capacity by 50%. The company’s gigafactory in Nevada started producing these battery cells and by 2018, Tesla’s Nevada gigafactory has become the high-volume battery plant in the world.
In 2019, Shanghai’s gigafactory completed its construction and became operational; increasing the electric vehicle manufacturing capacity. This also cut the costs by reducing the number of cars to be shipped across borders.
By 2020, Tesla has constructed gigafactories in Texas and Berlin which will start manufacturing and delivering cars by the start of 2021.
All of these events depict the ambition of Elon Musk to conquer the world of electric vehicles. Since 2017, the efficiency of Tesla has increased a great deal. The average cost per car has dropped by 55% as Tesla achieves the operating margin of industry lead by 6.3%.
Artificial intelligence quotient
Tesla has more than 1 million electric vehicles on the road all having external cameras for video capture; resulting in data of more than 3 billion miles till February 2020.
Tesla is the frontrunner of the race when it comes to autonomous vehicles. The autopilot in the vehicle is fully functional and the self-driving platforms offer the user some automation but they are also the source of collection of crowd data.
Data is the main foundation upon which artificial intelligence is based upon and Tesla has that advantage already.
The company is already on the road to building Dojo; a supercomputer designed specifically to train the neural network which will make the Tesla cars completely autonomous.
So what does the bigger picture look like? Tesla is a futuristic company that plans to launch its ride-hailing network as well as upgrade the electric vehicles’ maximum by 2030. The company which endorses so many advantages such as autonomy, innovation, and manufacturing efficiency; and plans to capture a big chunk of the $1.45 trillion markets in near future; should a person still have second thoughts about whether to buy Tesla stock or not? decide for yourself.