Tesla’s share price is one of the hottest and most traded stocks of 2020 and only knows one way – up. Here’s what you need to know about the world’s most famous electric vehicle manufacturer.

Tesla is a company that exclusively makes electric vehicles, clean power generation, and storage products. There are currently four different Tesla models to choose from: Model S, Model 3, Model X and Model Y. In 2020, Tesla delivered almost 500,000 vehicles, an increase of 36 percent compared to 2019.

Tesla is a company that is a leader in the electric vehicle industry and has become one of the most talked about stocks in the US stock market due to its tremendous growth. However, before you hop on the Tesla train, there are 10 things you should know about Tesla.

1. Tesla bought $ 1.5 billion (S $ 2 billion) in Bitcoin

The hottest news about Tesla is the purchase of $ 1.5 billion worth of Bitcoin.

Tesla said their Bitcoin purchase means “more flexibility to further diversify and maximize the return on our cash.”

Bitcoin as a payment method for Tesla products is also imminent. The company announced that it would accept Bitcoin as a payment method for its products, initially on a limited basis and subject to applicable laws.

2. You can now purchase a Tesla Model 3 in Singapore

Tesla fans, rejoice. Tesla cars are finally available in Singapore.

The Tesla Model 3 Standard Range, which reaches 100 km / h in 5.6 seconds, costs around 113,000 US dollars – twice as much as in the USA.

If you need speed, the Tesla Model 3 Performance (a powerful version of Model 3) hits 100 km / h in 3.3 seconds and costs just under $ 155,000. Both prices are without COE.

For comparison, based on current COE prices, the Tesla Model 3 Standard Range is cheaper than a gasoline-powered Toyota Camry.

You are also encouraged to cut your emissions and drive an electric vehicle in Singapore. The government introduces incentives for electric cars and more charging points for electric vehicles.

3. Elon Musk is the richest man in the world (and an influential one at that)

Elon Musk, co-founder and CEO of Tesla, is the richest person in the world and heads Jeff Bezos of Amazon.

In addition to being the richest person in the world, Elon Musk’s social media activities are incredibly heavy and can affect markets.

For example, his tweet recommending the use of Signal caused the share price of Signal Advance, a completely different company than Signal – the encrypted messaging platform, to surge by more than 5,000 percent.

More recently, Elon Musk’s tweets were sending Dogecoin – a Shiba Inu Meme-inspired cryptocurrency that started out as a joke – prices that shot through the roof.

4. Tesla is part of the S&P 500

Tesla joined the S&P 500 on December 21, 2020 – an index that tracks the 500 largest companies listed in the US markets. So when you invest in the S&P 500, you also get exposure to Tesla stock.

The S&P 500 is weighted according to market capitalization. By joining the index, Tesla will be among the ten most valuable companies in the index alongside companies such as Amazon, Alphabet, Apple, Microsoft and Facebook.

5. Elon Musk is a supporter of Bitcoin

In addition to tweeting about Dogecoin, Elon Musk has also made known his preference for cryptocurrency.

On January 29, 2021, the Tesla CEO added the hashtag #bitcoin to his Twitter bio. Days later, he announced in the popular Clubhouse audio chat app that he thinks Bitcoin is a good thing at this point and supports Bitcoin.

After Tesla buys Bitcoin, Tesla (and even the S&P 500) investors also get some risk on the cryptocurrency, whether you like it or not.

6. Increased by 900 percent since the beginning of 2020

The meteoric, Reddit-aided spike in GameStop stock price remains deeply entrenched in the minds of investors, especially as prices continue to fall.

In contrast to the extremely brief price spike these meme stonks saw, Tesla’s share price rose rapidly even before the Covid-19 pandemic.

Tesla closed at $ 849.46 on February 9, 2021. Over a year ago, on January 2, 2020, Tesla opened at $ 84.90 – that’s a phenomenal 900 percent increase.

7. Tesla is clearly overrated

If you’re a valuation-hunted investor, Tesla isn’t your stock.

There is hardly a shortage of articles on the Internet that say that Tesla shares are massively overvalued. Elon Musk himself admitted in the middle of last year that Tesla shares were “too high”. However, he also shared that he believes Tesla stock will be worth more in five years.

Some analysts are rating Tesla’s at lows of $ 67, with a high estimate of $ 1,200 – which shows just how far Tesla’s end of the price spectrum can go. This article provides a good breakdown and comparison of Tesla’s rating.

8. Tesla has made profits for five months in a row

Tesla’s bullish investors will know that in October 2020, Tesla made its fifth straight quarterly profit on record sales of $ 8.8 billion. This was helped by an increase in vehicle deliveries and the sale of environmental credits to other automakers.

In the third quarter of 2020, Tesla produced just over 145,000 vehicles and delivered nearly 140,000 vehicles. By comparison, Ford delivered 551,796 vehicles in the U.S. during the same period in the third quarter of 2020, while General Motors delivered 665,192 vehicles.

9. Tesla is hardly the only player in the electric vehicle industry

In addition to Tesla, if you want to take advantage of the growth in the electric vehicle industry or diversify your inventory beyond Tesla, you can also consider Tesla’s competitors, all of which are trading at a far lower price.

Competitors include Nio, BYD Company, Li Auto, Nikola and Workhorse Group. This also includes traditional automakers like Nissan, Hyundai, Audi, Ford, BMW, Kia Volvo, and more.

As Tesla continues to rip off automakers’ market share, traditional auto companies aren’t just resting on their laurels. Instead, these companies are also expanding their range of electric vehicles or hybrid gasoline-electric cars.

Examples are the Nissan Leaf, the Kia Niro EV, the Volkswagen E-Golf and the Chevy Volt.

Investment in Tesla from Singapore

A highly polarizing stock, Tesla has its hardcore fans and investors, as well as critics, who poke fun at its ratings.

If you’re optimistic about Tesla’s growth, you can consider buying Tesla stock outright and investing in electric vehicle ETFs or an ETF that emulates the S&P 500. To start with, use an online brokerage account that has competitive fees and attractive sign up benefits.

This article was first published on SingSaver.com.sg.

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