Blog Post

Electric car sales continued to build a commanding share of the $3.8 Trillion Car market globally. Last year nearly every month of 2021 broke a new purchase record. For example, more than 720,000 electric vehicle registrations this November, up 72% from the previous year! But this record was beaten rapidly in December with over 907,000 sales.

How Tesla Impacts Electric Car Market

Tesla played a crucial role in the electric car market in 2021. The company produces four models, with the Model 3 and Y being the most popular. Both finished in the top three electric car sales last year. Other electric car manufacturers didn’t come close to the volume of Tesla car sales. Even last quarter, Q1 2022, Tesla dominated new EV sales. ( Inside EV)

Electric Cars in the US and Global Market

Electric car companies continue to experience success throughout, especially in Europe and Asia. However, hybrids in the United States are still outpacing electric car sales, as hybrid vehicles experienced a 76 percent jump in sales in 2021. Battery electric vehicles even increased by a more significant percentage at 83 percent year over year, but they still only account for around 3 percent of the total market.

Tesla Stock (TSLA) Price Swings

The Tesla stock price is notoriously volatile compared to other well-known companies, as it can often swing one way or the other in a day. Tesla also continues to face growing competition in the electric vehicle industry, as Ford is manufacturing its first electric F-150 pickup truck and other companies continue to move towards electrification. As a result, focusing on innovation will continue to be a top priority for the company.

The news of Elon Musk announcing his intent to buy Twitter is also making a significant impact on Tesla’s stock price. Twitter would account for nearly a sixth of his net worth, while around $60 billion of his Tesla stock will be used as collateral for bank loans. In addition, Elon Musk will need $21 billion in cash, as he may sell some of his Tesla stock to help close the deal. Ultimately, the business dealings of Elon Musk will continue to make an enormous impact on the cost of Tesla stock, as shares initially dropped by 8.25% after it was announced that he would be buying Twitter. As of this week, Elon said the deal is on hold, which he said would depend on Twitter’s bot count.

Strong First Quarter for Electric Vehicle Sales 

The only vehicles to experience sales gains in the United States were electric vehicles last year. As stated previously, Tesla led the pack in sales amongst other EV competitors. However, the company is experiencing logistical problems, especially in the Far East.
This past week, Tesla was forced to decrease vehicle production at its Shanghai factory due to a parts shortage caused by the COVID-19 lockdown. Authorities in China temporarily closed the facility that produces a cable harness used in Tesla’s Model Y vehicles. China continues to stay with its zero-COVID policy, which creates significant issues in trying to manufacture vehicles amid shutdowns. As a result, shortages and supply chain problems will continue to be a considerable challenge for Tesla and other manufacturers for the foreseeable future.

Closing Thoughts

Keeping up with the latest Tesla news can often be a challenge due to the fast-changing nature of the industry. The cost of Tesla stock will most likely continue to rise and fall while Elon Musk looks to finalize his purchase of Twitter. Twitter is also a viral stock, in terms of media coverage, especially with the potential Twitter deal. The key to success with a popular stock, or any stock for that matter, is proper stock allocation. Tesla is one of the stocks that people tend to go all-in on owning it. That can be a precarious position because it overexposures your portfolio to a single stock risk. A stock price, although necessary, doesn’t tell you all the information an investor needs. You need the share count, which you have to be a subscriber. The share count allows you to concentrate and focus on your position. Which strengthens and grows your capital, all with our portfolio reducing single stock risk.