Top-7 Anti-crisis Stocks at Wall Street: Tesla
Tesla shares price more than tripled, from a $400 area in November 2020 to a $1,243.5 high in October 2021. Certainly, it got ahead of itself and of any reasonable pace too, so it was destined for being adjusted later on. However, objective reasons like the global deficit of semiconductors, which forced the factories of many auto concerns to take a halt, could not undermine Tesla's plans to expand production. The outstanding earnings of $2.54 per share on revenue of $17.72 billion for the fourth quarter of 2021 far exceeded the expectations of analyst polls and seemingly deserve that Elon Musk's company could be valued much more than the recent bottom of $700 per share.
The recent and long-awaited go-ahead to start its European Gigafactory in the area of Berlin, just confirmed on March 4, may lead Tesla to roll out the 500,000 battery-powered vehicles there. Again, Tesla would deliver its Model Y cars to European customers much faster and cheaper than it used to do from its Shanghai factory. A battery plant to generate more than 50 gigawatt hours per year is also a sad detail for all competitors here in Europe including Volkswagen. Markets already appreciated those facts as Tesla's price touched a $860 level several days after the news from Germany. Yet, the distance from last autumn's peak is still very big, and it became almost $100 bigger after the price lost some of the recent gains in sync with the overall market correction on Russia-Ukraine agenda. Yet, another decline seemed not to be fundamentally reasonable as Tesla is not exposed to the influence of Russian or Ukrainian markets. Its EVs are still a rare phenomenon in both countries being too expensive for the consumers there. Again, traditional automakers like Volkswagen or Ford who are combining electric vehicles with ICE cars production may get substantial financial losses when they temporarily leave Russia.