Tesla's Stunning Growth Story Is Only Just Getting Started

Photo: CNBC

Tesla's (NASDAQ: TSLA) performance continues to impress, leading to confidence that its strong growth is just the beginning. The company's investors continue to receive an increase in profits, even despite short-term fluctuations.

Simply Wall St analyst Goran Damchevski has published an article "Hard to Believe, but Tesla's High Growth may be Just Beginning." It should be kept in mind that neither he nor the publication that published the article have a position in Tesla. Damchevski analyzed the company after it released production and delivery data for Q3 2021.

The analyst drew attention to the fact that Tesla's long-term investors continue to profit from the stable growth of the manufacturer. The share price has risen by a whopping 1,871% over the past five years, giving most investors a solid return on owning shares even for several years. Also, the share price has risen 14% in the last quarter, which means that the stock has confident investors who are not interested in selling anytime soon.

Tesla has made only minimal profits in the past twelve months, so Damchevski has focused on earnings to gauge the development of its business. Overall, Tesla is currently in a phase of rapid growth and high reinvestment. The company's vehicles are in high demand and the manufacturer must continually reinvest in manufacturing and supply chain capacity to mature and become a market leader in vehicles, not just electric vehicles. This will take several years, according to the analyst, as Autopilot systems are under development and factories are expanding.

Growth looks good, and Tesla has boasted 34% annual revenue growth over the past half-decade. The market has not missed this and has pushed the share price up by 82% per year in that time. Damchevski stresses that "top performers like Tesla have been known to go on winning longer than skeptics can stay solvent."

By looking at how analysts assess Tesla's future, the market could get a picture showing a growing company and perhaps even a few positive surprises in the coming years. In just two years, analysts expect revenues to nearly double the company's current value.

© 2021, Eva Fox | Tesmanian. All rights reserved.

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This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.