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Is Tesla a good growth stock?

Elon Musk, Tesla Chief executive, never has a dull moment. He launches astronauts to space station. To a roaring crowd, he opened a new Berlin auto manufacturing plant. In another, he’s playing with Twitter after becoming its largest shareholder. Do you think Tesla stock is worth buying after all this?
Tesla (TSLA), a Tesla subsidiary, reported that it delivered 310.048 vehicles in the initial quarter. This is 68% higher than the year before and less than analyst estimates of 312,000.

Analysts were anticipating a lower number due to recent Covid shutdowns of China’s Shanghai Tesla electric vehicle plant. Dan Ives, Wedbush analyst and note-writer to clients, stated that the shutdown created “massive logistic problems delivering units customers in Europe.”

Ives wrote, “Relatively to other automakers like GM (GM), Ford Motor(F), as Chinese EV-players such as Nio [Nio], Xpeng (XPEV), and others. We view these delivery numbers as a positive and important step in the right path for the next phase of the Tesla Growth Story to take root with Berlin and Austin factory now green lighted.”
Covid Closes Shanghai Plant

Tesla reported better earnings than expected for the first quarter of 2017. The company is slowly reopening its Shanghai facility, which was closed following a spike on Covid-19 in China.

“While weekly production rates had been strong in Q1, an increase in COVID-19-related cases in Shanghai caused the temporary shutdown of both our factory and some parts of it’s supply chain,” management stated in its earnings presentation. Although some production has resumed recently, we are continuing to monitor the situation closely.

Musk is nevertheless optimistic that output will rebound. Musk shared his expectations that the second quarter’s production will be similar to that of the first quarter. However, he did not say if it would be slightly lower.

He stated, “We might have the ability to pull a bunny out of the hat.”
First-Quarter Earnings Soar

Tesla’s earnings per stock rose by 246%, reaching $3.22 a piece, and sales increased by 81% to $18.76billion in the first quarter. This is the second consecutive quarter that both have seen accelerated growth. This includes $679,000,000 in regulatory credit, nearly doubling the amount of the fourth quarter 2021. Twitter stock increased by 5%

Tesla’s Berlin factory was opened March 22nd. It is currently shipping the Model Y. Its Austin factory opened on April 7, and it will make the Model Y.

However, delivery targets may not be achieved due to persistent parts shortages and the war in Ukraine.

Musk declared on Twitter that this quarter was “exceptionally difficult” due to supply chain disruptions and China’s zero COVID strategy.

The auto giant has said it will sell 1.5m new electric vehicles in 2022. It could even go as high as 2million if there are no supply problems. This would more than triple the total of last year.
Twitter Buys Elon Musk

As if all of this wasn’t enough activity Musk announced that he purchased a 9.2% share in Twitter (TWTR). This makes him the company’s largest shareholder.

Head on over to our site for Tesla stock prediction 2025.

Musk offered to buy Twitter on April 14 for $54.20 per shares in cash. Twitter reached an agreement with Musk eleven days later. The transaction was valued at $44billion and paid $54.20 per unit in cash.

Musk said in written remarks that “free speech, the bedrock of any functioning democracy,” and Twitter is where the vital matters of the future are debated.

“I also want Twitter more than ever by making it better, increasing trust, making the algorithm open source to increase safety, defeating the spambots, and authenticating all users,” he continued.

Musk is aiming to produce 20 million electrified vehicles annually over the next ten-years. This will be double the amount of production currently being done by other auto-making titans. It now has a mission: to rapidly expand its manufacturing capabilities.

Tesla will soon be manufacturing cars in Germany. This means that it will face off against three German-owned brands: Volkswagen Group / VWAGY, BMW / BMWYY and Mercedes-Benz / Daimler AG IF (DDAIF).

Rivian Motors, General Motors, and Ford Motor are some of the other major competitors. Ford’s F-150 Lightning Lightning electric truck is scheduled to be available this spring. In the second quarter, 2023, the first GM electric Silverado for fleet operators will go on sale.
Tesla Stock

According to IBD StockCheckup, Tesla stock currently has an IBD Composite Score of 95. For the best potential gains, choose growth stocks with a Composite Score of 90 or higher when selecting growth stocks based on CAN SLIM’s investment paradigm.

The stock also has a relative strength rating (87 out of 99). This rating indicates that Tesla stock is better than 87% of all stocks on the IBD database in the past twelve month.

Its Accumulation/Distribution Rating is C. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A grade A is indicative of heavy institutional buying. E is the lowest grade. It indicates heavy selling. Consider the C-grade neutral.

Timing is vital in the stock markets. If you’re trying to find stocks to buy/sell, timing is critical.
Tesla Stock is a Good Investment

MarketSmith analysis of daily charts shows that Tesla stock now has a cup base with a buypoint of 1,152.97. Market sell-offs caused shares to take a breather after a surge of 32% since midMarch. It closed regular session trading on April 11, 975.93.