An important chapter in Tesla’s history closed last week. Although the automobile company has reached a significant level in its technology, fully autonomous driving software will be phased out. And investors did not welcome the news. Shares dropped from $216 to current $119.53 in just five days. In the markets, speeches of Elon Musk’s last decade still resonate, and he has been advocating fully autonomous driving capabilities for almost a decade.
It was precisely Tesla that started producing the first vehicles designed for autonomous driving in October 2016. The firm has released several versions of the software in recent years, and the estimate is that the investor commemoration day is March 1. , Musk presents the next version of it. XTB analyst Darío García said: “At first glance, the issue of self-driving cars seems like the distant future, but on closer inspection, this function may soon accompany us in daily life“.
Investors are starting to see Tesla’s growth potential over the past decade. Registered company Nearly 45% compound annual growth rate and 46.5% gross profit. If we look at 2013 and the company’s growth through 2022, EBITDA recorded 81.6% compound annual growth. It made its first full-year profit in 2018, and from 2020 its net income has started to rise from $721 million to $12.56 billion, corresponding to a compound annual growth rate of 317.31%. Free cash flow is also decent: Tesla earned $4.2 billion at the end of 2022, compared to -32.5 million reported at the end of 2013. to reduce the actual free cash flow available to investors to just $1 billion.
“In terms of profitability, the company is achieving impressive results,” says García. The average selling price is one Downtrend until it stabilizes at $55,000, the operating margin continues to increase and is already close to 17%. “At this point, any additional revenue generated due to increased operational efficiencies is more valuable,” he adds.
Economy or premium cars?
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Despite the skepticism surrounding the electric car market, Tesla maintains good sales figures. The firm sold 1.31 million vehicles in 2022 and plans to increase that figure to 1.8 million. Number of cars for the current financial year. This is an ambitious plan that envisions a 50% increase in compound annual growth rate from 2020 to 2023. Currently, Tesla produces four types of vehicles: Model 3, Y, S and X. mass market, the other two another way. Prices are still too high to reach any type of customer: the first two range from $40,000 to $60,000, and the last two start at $100,000.
It is true that Tesla has repeatedly stated that it wants to make the production process more efficient in order to lower the average selling price. “However, there are other automakers that can sell EVs at lower prices and with a wider choice of models,” Garcia says. Some, such as Nio, Byton or BYD, have landed in our country. Tesla is currently interested directs automobile production to more economical variantsis characterized by lower margins and higher volumes, but “another possible scenario is for Tesla to become a premium automaker.” In this way, the company led by Elon Musk was able to compete with brands such as Mercedes, BMW, Audi or Lexus.