2020 has become a past tense. Although people have experienced the tribulations of global public health events, it is believed that mankind will eventually be the winner. The boom in the stock market has also confirmed this view. For example, the S&P 500 Index set a new record high in 2020, rising by more than 16% throughout the year. To say that the strongest performing component of the S&P 500 is Tesla, which has just joined, Tesla has risen as high as 743% during the year and is one of the hottest stocks in the US stock market in 2020.
Included in the S&P 500 Index
Thanks to the rapidly growing new energy vehicle market in 2020, Tesla has achieved profitability for five consecutive quarters, meeting the conditions for joining the S&P 500 Index. It was finally officially included in the S&P 500 index on December 21, 2020.
The S&P 500 Index is a barometer of the U.S. capital market and an important indicator of the overall U.S. economy. A company's inclusion in the S&P 500 Index usually means maturity. One stone caused a thousand waves, the news instantly detonated Tesla's bulls, and Tesla's stock price broke out again with a small upsurge. According to calculations, after Tesla was included in the S&P 500 Index to the end of 2020, Tesla's annual growth rate soared from 390% to 743% in just one and a half months.
Year-end promotion
In addition to the inclusion of the S&P 500 index as the fuse that detonated Tesla's bulls, the surge in sales of Tesla cars is also a key factor supporting the surge in Tesla's stock price. Tesla's 2020 sales target is 500,000. In order to achieve this goal, Tesla has opened a year-end promotion model. In addition to providing free supercharge as a benefit, Tesla also launched a three-month fully automatic driving package service.
The effort paid off. On January 2nd, Tesla announced the high-profile production and delivery of electric vehicles for the fourth quarter and full year of 2020. Tesla said it will deliver 499,550 vehicles to consumers throughout 2020. Although it failed to achieve the delivery target of 500,000 vehicles, Tesla also disclosed in the document that the currently announced delivery volume is a relatively conservative figure, and there may be a difference of 0.5% or more in the end, which means special Sla may have completed its 2020 sales target.
Another storm of price cuts
On the first day of 2021, Tesla announced that China-made Model Y will begin delivery this month. The two versions of domestic Model Y are priced at 369,900 yuan and 339,900 yuan respectively. This is significantly lower than the price of Model Y in the North American market by 165,100 yuan and 148,100 yuan. The sharp drop in the price of Model Y caused a surge in visits to Tesla's official website in China, which once led to server paralysis, which shows the popularity of Model Y. It is reported that after the announcement of the price cut, the number of orders soared to more than 100,000 in a short time.
Model Y is a product that Tesla has high hopes for. Musk once said that as a cross-border vehicle, Model Y may surpass Model 3 in terms of word-of-mouth in the future, and Model Y's sales may also surpass other models in 2021.
Pay attention to the Chinese market
China is the world's largest electric vehicle market, and it ranks Tesla's second largest market after the United States, and it has always been a market that Tesla has focused on. The Chinese auto market is currently rapidly transforming into new energy vehicles. It is reported that China plans to increase the proportion of new energy vehicle sales to 40% by 2030. According to the prediction of the China Passenger Car Association, Tesla's sales in China in 2021 may reach 280,000.
The scale of the Chinese market is huge, but the competitive pressures Tesla faces cannot be underestimated. Shanghai GM Wuling, Weilai, Xiaopeng, Ideal and other car companies are also catching up to compete for China’s huge electric vehicle market. At present, these car companies have also achieved good results, and Tesla is facing more competitive pressures. Come bigger. In order to consolidate its leading position, Tesla not only cut prices several times to attract customers, but also increased investment in supporting facilities. It is reported that Tesla has begun to produce charging piles in Shanghai, and Tesla's goal is to build 650 super charging stations every year.
Institutional perspective
After Tesla created a staggering 743% increase in 2020, Wall Street analysts have divided their views on Tesla's outlook. The bulls believe that Tesla will be able to maintain its dominant position in the future, sales will continue to grow rapidly in the next few years, and Tesla's stock price has room for a substantial increase. For example, Wall Street venture capital firm Loup Ventures believes that Tesla may rise to $2,500 in the next three years. Goldman Sachs also upgraded Tesla's rating to buy. The bears believe that Tesla has been significantly overvalued, and investment banks have set Tesla's target stock price below $100.
Conclusion
Looking ahead, with the gradual expansion of the global electric vehicle market, Tesla, as the industry leader, will surely be the biggest beneficiary. In addition, the substantial price cut of the Chinese-made Model Y is expected to attract more potential customers. In the future, it is expected to surpass the Model 3 to become Tesla's most popular model. Tesla's sales volume in 2021 is bound to reach a new high, and Tesla's stock price remains There is also a basis for upwards.
However, as competition in the electric vehicle industry has become fierce, and Apple in particular has the idea of getting involved in the field of electric vehicles, it is conceivable that Tesla will face greater and greater challenges in the future. Tesla wants to maintain its dominant position in the industry. put in more hard work.