Tesla Inc (NASDAQ: TSLA) shares have delivered absolutely smashing returns this year.
How smashing?
Since the opening bell on 3 January, Elon Musk’s EV tech company has gained a whopping 147%. That compares to a gain of 38% posted by the Nasdaq Composite Index (NASDAQ: .IXIC).
Despite crashing 65% in 2022, investors who bought Tesla shares five years ago will be sitting on gains of 1,022%.
Very tidy.
As a growth-oriented company, the stock also commands a price-to-earnings (P/E) ratio of around 76 times.
Still interested in buying into the EV company?
Then here are three things you probably don’t know about Tesla shares.
Tesla shares encompass only four models
Most global car manufacturers offer a wide range of models.
But not Tesla.
Tesla discontinued production of its first model, the Roadster in 2012. The EV supercar, launched in 2008, came with a hefty price tag and blistering acceleration. Though with a limited range.
That leaves Tesla shares with just the four EV models you’re likely familiar with.
Those are the higher-priced Model S and the relatively cheaper Model 3, both four door sedans. The company also has tapped into the global SUV craze, with a smaller Model Y SUV and a mid-sized Model X.
Between the four models, Tesla produced 479,700 vehicles and delivered 466,140 in the past quarter. The $21.3 billion in revenue from those sales was up 46% year on year.
But Elon Musk has broader ambitions.
That’s seen Tesla commence production of larger, more powerful EVs, like its new Cybertruck. The company expects to begin its first deliveries later in 2023.
On an even larger scale, the company also kicked off production on the Semi in December. This semi-truck has already drawn interest from a number of major corporations to service their commercial trucking requirements while ticking their sustainability boxes.
Leading the charge to net-zero
Atop producing EVs, Tesla shares are also involved in other aspects of reducing global dependence on fossil fuels.
Indeed, Tesla’s self-declared mission is “to accelerate the world’s transition to sustainable energy”.
To that end, the company is involved in solar panels for both residential and commercial properties. And Tesla sells battery packs like Powerwalls and Megapacks for home or commercial energy storage.
The company has been active on a larger scale right here in Australia. In South Australia, the Tesla Big Battery – or as it’s technically called, the 150 MW / 193.5 Hornsdale Power Reserve – came online last year.
While not generating nearly the same revenue for Tesla shares as the EV component, the energy generation and storage segment brought in US$1.5 billion in revenue in the past quarter. That’s up 74% year on year.
Tesla shares on the road to profitability
Despite its US$838 billion market cap, Tesla is really a growth stock.
Among other major capex outlays, the company continues to invest heavily in research and development, and building new factories. That saw the company only achieve its first profitable year in 2020.
In 2022, Tesla shares raked in US$13.7 billion in operating income, at a 17% margin. That compared to a 6% margin in 2020.
That’s a promising trend.
But in an effort to spur sales and reduce inventory this year, the company reduced the prices of its vehicles. While that did see a big uptick in sales and deliveries, it also saw margins in the past quarter fall to 9.6%.
Tesla shares fell 10% on 20 July following that quarterly release. The stock has since gained 2%.
