The market capitalization of Tesla is moving upward towards the trillion-dollar mark. It is believed the company may be worth $4 trillion by 2030 as the electric vehicle may have 60 percent market share by then and Tesla may capture two-fifth auto market share.
The optimistic prediction comes from several market analysts including The Future Fund's Gary Black and Ark Invest's Cathie Wood. It is expected that the stock of Tesla may touch $3,000 by 2025.
According to Wood, the bull price target by 2025 is $4,000 while the bear is $1,500 by the same year. An important milestone for the company is its recent approval of Gigafactory manufacturing unit in Germany that can add about half a million vehicles annually. It will be a major beachhead in Europe as production will be increased and costs can be curtailed due non-importing of vehicles from the United States.
Tesla lately announced it will be working on a stock split and this can be viewed as an incentive to several opportunistic investors. However, it cannot be denied that the company will continue to face the supply issue of semiconductor chips along with other problems in the supply chain throughout 2022.
The company has confirmed in an SEC filing to be seeking approval of shareholders for a stock split and to follow the footsteps of Alphabet and Amazon to drive growth.
Stock split leads to an increase in the number of shares while reducing the price value of each unit. The strategy makes shares cheaper and hence easily accessible by retail investors having less capital.
Tesla was founded by Marc Tarpenning and Martin Eberhard in 2003 in San Carlos, California, US. It is named after Nikola Tesla, an inventor, mechanical engineer and electrical engineer from Serbia. It is the leading manufacturer of electric vehicles in the world and by the end of 2021 a total of 2.3 million units were sold globally.
Based in Austin, the company is the most valuable automaker in the world with respect to market capitalization. It has a world record in the sales of plug-in electric and battery electric vehicles with 16 percent and 23 percent market shares respectively.
Tesla has five large manufacturing units and these are Tesla Freemont Factory in California, Giga Nevada in Nevada, Giga New York in Buffalo, Giga Shanghai in China and Giga Berlin in Germany. It is building up a factory in Austin too.
The key people currently handling Tesla include chairman Robyn Denholm and CEO Elon Musk. Martin Eberhard was the CEO from 2004 to 2007 and he was replaced by Ze'ev Drori until 2008.