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QUESTION
Tesla Corpartion Introduction
This paper is apart of a PowerPoint presentation, as a team project. I am assigned to introduction, and the second student is responsible for the SWOT portion of the paper.. Although my portion will not be detailing the companies financial growth of the company, can you try to end the paper stating how's the company doing in terms of revenue growth, returns for their investors (compared to their industry), use of leverage to finance their assets, etc. Based on your introduction, i will include my own PowerPoint slides.
| Subject | Business | Pages | 3 | Style | APA |
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Answer
Tesla Corporation
Tesla, Inc. is an American based Electric Vehicle and Clean Energy Corporation headquartered in Pablo Alto, California. Founded on 1st July 2003 by engineers Marc Tarpenning, Jeffrey B. Straubel, Martin Eberhard, and Elon Reeve Musk (current CEO) as Tesla Motors, the corporation seeks to enhance the shift from a mine-and-burn hydrocarbon economy towards a solar electric economy. The Inc. functions through two significant segments: generation of energy and automotive and storage. The automotive section designs develops, assembles, and distributes high-performance electric cars and powertrain components globally. The storage component designs, produces, installs, and sells, leases all products of stationary energy storage, solar energy systems, and distributes solar energy systems to tapping electricity to consumers. It takes pride in its unique sales and service networks and enjoys the flexibility of selling components of powertrains to other significant worldwide automobile developers. It extends its client services globally to increase the niche while enhancing quality services and product options. Tesla’s core products include electric cares, solar products (solar panels and solar roof tiles), battery energy storage (power-wall and power-pack), among other related products and services.
The conglomerate has been in operation for 11 years now; it remains the global best-selling battery-electric and plug-in passenger car manufacturer. Tesla stock is a good market investment as most retail investors prefer the company’s deals. It is ranked among the top 10 most recommended and popular holdings on Robinhood, a commission-free and accessible trading app. From the data on the platform’s web access, close to 530,000 users have bought the stock, which places TSLA strategically behind other Big Tec Names such as Microsoft (MSFT) and Apple (AAPL). Tesla’s financial leverage refers to the extent to which the company uses private fixed-income securities and equity to finance upcoming sales projects. Economically, firms with high leverage are vulnerable to various financial risks due to debt increment. A high level of financial leverage generates high-interest payments, implying that Tesla’s accumulative debt might increase substantially following the previous reporting on performance. Based on the trailing 12 months, Tesla’s revenue escalated the most between 2018 towards 2019. The 2019 annual report on performance suggests that the firm’s overall motor sales increased by 50% from 245,240 units to 367,849 units, equalizing to $26 billion.
In 2020, Tesla exceeded the 1 million mark of total electronic motors under production. By halfway the year, the company’s vehicles accounted for about 81% of the total battery electronic cars purchased across the US. Tesla has been profitable for four quarters in a row for the first attempt since its development. The performance led the firm into realizing $6 billion in revenue within the period, buoyed by approximately $370 million in total energy storage purchases and $487 million in service revenue. Even though the firm’s sales have grown fast and steadily, there are no sudden acceleration reports. The stakeholders opted to continually lower the prices of products and services in the market. It generates a string of quarterly revenues from government credits and booking of prepaid sales orders for a Full Self Driving innovation that has not been implemented yet. The data retrieved from Learnbonds suggest that the Return on Investment at Tesla stands at 519.73% between July 2016 and July 2020, compared to their more massive industry, whose return on investments is at 104.26%.