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Tuesday, May 17, 2022

Tesla Inc. (TSLA) stock is rising in the Pre-market; here is why?

Tesla Inc. (NASDAQ: TSLA) stock is currently on the rise in the pre-market after announcing its first-quarter results. TSLA stock is trading at $1,020, gaining more than 1% from the previous close. TSLA stock closed at $1,008.78 with a trading volume of 23.89 million shares.

Global Electric Vehicle Industry Dynamics

Tesla Inc. (NASDAQ: TSLA) is an electric vehicle manufacturing company having the largest market share in the global electric vehicles industry. Tesla has seen a massive demand for its electric cars over the past years. The company has a market cap of over 1 trillion US dollars.


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As the world moves towards adopting green energy, the demand for electric vehicles has also seen a massive increase. Electric Vehicles have attracted consumers on other factors such as their outer perform conventional cars regarding carbon emissions, maintenance, and fuel efficiency. Other factors related to experience are smooth ride, less engine noise, and ease of charging at home. Although electric cars do not need engine oil changes, they are more costly than their gasoline-powered competitors.

Statistics show that the worldwide electric vehicle industry was worth $185 billion in 2021. With a compound annual growth rate (CAGR) of 24.5 percent predicted for the projected 2022-2028, it is estimated to reach $980 billion by 2028.

TSLA: Q1 Highlights

  • In the first quarter, Tesla’s total sales increased 81% year on year, reaching $18.8 billion. Vehicle deliveries, average selling prices (ASPs), and other areas of the company all contributed to an increase in revenue year-over-year.
  • In the first quarter of this year, the company’s operating income rose to $3.6 billion, resulting in an operating margin of 19.2%.
  • With a free cash flow of $2.2 billion and loan repayments of $2.1 billion, its short-term marketable securities and cash equivalents climbed sequentially by $0.3 billion to $18.0 billion in Q1. After the first quarter, its total debt, excluding financing for vehicles and energy products, was less than $0.1 billion.
  • In March 2022, production and deliveries began at the Gigafactory Berlin.
  • In April 2022, production and deliveries began at the Gigafactory Texas.

Conclusion

The electric vehicle market is witnessing a huge boom, and the 81% rise in its yoy revenue is proof of it. Tesla has achieved record sales in one quarter, and investors are excited about this increase.

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