The Automotive Revolution: When Will Elon Musk Sell Tesla?
Tesla, Inc. is the epitome of automotive revolution. Its CEO, Elon Musk, is widely deemed a visionary and one of the foremost innovators of the modern era, prompting many to ask, “When will Elon Musk sell Tesla?” As of mid-2020, the answer is a resounding: Not any time soon, if ever.
In the company’s early days, Elon Musk obviously had a plan for ultimate success. In 2018, his success hit an all-time high when the company became the first major publicly-traded automaker with a market capitalization of $100 billion. This heightened the interest of Wall Street in Tesla, ushering in a new wave of speculation about when the entrepreneur would sell the iconic automobile maker.
Musk has responded to these inquiries in both word and deed. In an interview with journalist Kara Swisher in 2019, he revealed that he owns approximately 20 percent of Tesla and has no intention to sell anytime soon. He has gone on record saying that his goal is to make Tesla “the best [automaker], so that would be the outcome that I would want.” Reaffirming his public commitment to Tesla, Musk declined substantial sums of money when investors attempted to purchase his shares.
In the 2020 Annual Report, Tesla reaffirmed its plan to continue “making major deployments of new products and services… as well as strategic investments that enable and accelerate our growth,” making it obvious that Elon musk and Tesla are not going anywhere in the near future.
The Advantages of Owning Tesla
Tesla is widely considered to be an attractive investment for a variety of reasons. Elon musk’s track record of correct predictions, his technical know-how, the company’s capacity for consistent innovation, and its global reach are drawing in shareholders from all over the world.
The recent announcement of Tesla’s semiconductor factories, self-driven cars, and solar-powered roofs have made the company especially attractive for investors. Not only do these plans provide Tesla with a much-needed revenue stream, but they also create a multitude of jobs and opportunities for people from all walks of life, both here and abroad.
The Future of Tesla
Tesla’s success has made the automotive industry one of the leading industry sectors of the 21st century. By investing in the future of the green economy, Tesla is further leveraging its dominance and transforming the automotive industry into a more sustainable, innovative, and profitable market.
Analysts often point out that Tesla is driven by the innovation of its CEO. With each new endeavor, Tesla demonstrates that boldness is not only possible, but also bountiful when it reaches the right people. In 2020,Tesla’s stock price is more than twice what it was in 2019, and there are no signs of slowing down.
Concurring with the interoperation of Tesla’s enthusiasts, analysts concur that the long-term outlook for the company is still positive. For example, Morgan Stanley analyst Adam Jonas believes that Tesla’s current advantage in technology have set them up well for the future. With self-driving cars, energy storage, solar power, and other new technologies on the horizon, there is no telling what the company could accomplish in the coming years.
The Value of Tesla
Despite the success of Tesla, an investor must consider several factors when determining its market value. Elon Musk’s involvement and vision can be both a blessing and a risk; his unconventional behavior can raise investor opposition, causing dips in stock prices, even when the company is doing well overall.
Also, Tesla’s dependence on subsidies and tax credits as well as increased competition from other companies makes it a riskier bet than many of its peers in the industry. For these reasons, many investors consider buying in Tesla to be a gamble, and suggest that those holding stock in the company watch the news closely and remain wary of the risks associated with its volatility.
The Risks of Tesla Stock
Another important factor potential investors must consider is that Tesla lacks the protection of a dividend, a feature that has become a major part of investing. Without the assurance of a dividend, an investor’s money could be lost if the company fails to perform as expected.
The stock also features a high P/E ratio, meaning it carries a high risk that its share price could fall in the event of projected earnings that fail to meet expectations. Therefore, while there are many advantages to owning Tesla stock, investors must be sure to consider all their possibilities to ensure their money is being invested wisely.
The Impact of Tesla Motors
Tesla’s success has made an indisputable impact on the entire automotive industry. The company is continuing to expand its off-site investments, and its contributions to the field of renewable energy are unprecedented. As Musk occurs Tesla is making the world a better place in which to live.
Arguably one of the main differences between Tesla and other car companies like Ford and Volkswagen is the emphasis on automation and innovation. Tesla is rapidly moving ahead of its competitors in terms of technology, and it is expected that it will continue to be a significant player in the automotive industry for the foreseeable future.
Elon Musk’s Legacy at Tesla
Overall, it is clear that Elon Musk has been the key factor in driving Tesla’s success. His willingness to take risks, coupled with his technical skills and determination to push the boundaries of the automotive industry, has resulted in Tesla becoming a household name.
Elon Musk is also a master of marketing, making sure that Tesla and its products receive maximum exposure. He has also become one of the most powerful businessmen in the world, with a personal fortune estimated to exceed $22 billion. It’s safe to say that he will remain in control of Tesla and its direction until a successor takes the reigns.
Summary
When will Elon Musk sell Tesla? It’s not likely that he ever will. By completely investing himself and his business into Tesla, Elon Musk has created an incredible legacy. His ability to predict the future needs of the automotive industry coupled with his skill as a marketer and innovator led to the creation of an iconic, game-changing automobile. Despite the gamble and risks associated with investing in Tesla, its potential future growth leaves the investor with a potential payoff worth considering.
