The company I will be reviewing is Tesla, which is an American electric vehicle company manufacturing environmentally-friendly vehicles. The company's shares are sold on the NYSE, and its shares have grown steadily over the years. The company has slowly become influential, with an increase in its stock prices to 1, 001.78 by 0.75% on June 24, 2020. The company has experienced a rapid capital appreciation over the last few years, with the Market Cap also increasing to 185.805B as at June 24, 2020. From a profit and loss perspective, the company is yet to make huge profits compared to other prominent vehicle manufacturers. The inability to record profits has prevented the company from providing its Price-to-Earning ratios. However, this is not a major problem as the company's investment is more futuristic and often receives discounting due to its involvement in sustainable vehicle development.
A deep dive into the company's financials reveal a 1.7 beta, which is more than the market value. Although a high-beta stock may be risky, it provides higher returns to the company. This shows a brighter financial future for the company, which has been shown by the steady rise in the company's revenue over the years. As at December 30, 2018, the company recorded a revenue of $21, 461,268, 000, which increased to $24, 578,000,000 as at December 30, 2019. The constant increase in revenues has beaten the expectations of many. The company has a large amount of debt capital; the attempts to break away are brought down by the additional expenses resulting from this capital and its development and expansion. The earnings before taxation and depreciation expenses have significantly increased, and most investors expect the company to break even soon due to an increase in demand for its products and discounts due to investment in environmentally-friendly vehicles.
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From the company's financial information and the stock market, it can be seen that the progress of the company financially is very promising. The market share, stock price, and revenue generation of the company are on the rise. This has increased the expectations by the investors for the company to start making 'real' profit. This trend will see the company manage its debt capital by increasing the return on capital. This information shows that Tesla Inc. has a brighter financial future that will promote positive growth.
