TSLA Analysis: Tesla Shares Get Supercharged. Is This a New Trading Era?

FXOpen

On of the many disruptive masterstrokes which was cleverly considered by Elon Musk and his team of Silicon Valley tech superstars when launching the Tesla company was to build in a form of ‘forced loyalty’ which would give the company a continued revenue stream even if the traditional motor manufacturers attempted to jump on the bandwagon.

Tesla may well have attempted to reinvent the way the automotive industry operates by coming from the outside with a totally different approach, turning on its head a highly established global industry with over 130 years of gradual progress under its belt, however, it was a calculated disruption, as the company considered what would happen should the giants of Detroit, Aichi, Seoul, Stuttgart and Gothenburg suddenly attempt to rival it with high performance electric cars which would have the added ingredient that Tesla lacks – pedigree.

It was inevitable that this would happen, and it did. Nowadays, just less than a decade before the Tesla Model S hit the streets, every automobile manufacturer in the world has rolled out a range of high-tech electric cars.

Tesla’s ace card was to build the infrastructure required for practical, quick charging and ensure that it keeps its own product on its own network, rather similar to the method used by mobile phone airtime providers by locking the latest smartphone handset to their network.

Tesla’s ingeniously named ‘Supercharger’ network is now a recognizable brand in itself, the red and white terminals having been installed across the world.

The rest of the industry uses the ‘Menekkes’ system, however, Tesla has managed to keep its customers from straying by using the Supercharger as a retention tool and extra revenue generator as it owns the entire charging network.

Now, Tesla has another trick up its sleeve, which is to begin to allow other vehicles to connect to the Supercharging network.

This was announced this week, and the result is that Tesla shares have soared to a six-month high, today beginning the trading day at USD 274.45 per share.

That is a 45% increase in the last 30 days, and a staggering 99% increase in the past six months.

Indicative pricing only

Indeed, Tesla shares have been notoriously volatile over the past few years, rather more so than the more conservative ‘big tech’ firms with which it rubs shoulders on the premium end of the NASDAQ listed corporate giants, largely due to Elon Musk’s flamboyant nature of conducting ‘world firsts’ such as making Tesla the first corporate cryptocurrency ‘whale’ without so much as a slight amount of pushback from shareholders or NASDAQ itself.

The accessibility by other vehicle users to the Supercharger network is a potentially huge revenue booster for Tesla, as it can now sustain itself via a method which does not only rely on electric vehicle sales and leasing, but also on charging other vehicles to use a network that it has installed almost globally.

So far, it is other North American car manufactuers that have shown interest in securing access to the Supercharger network, two of which are absolute stalwarts of the automotive industry, General Motors (GM) and Ford Motor Company, and the other being a similarly tech-focused start-up in the way Tesla was 10 years ago, that being Rivian, manufacturer of the R1T electric truck.

There is an unwritten rule that whatever America does, the rest of the world follows, and in the automotive industry throughout the decades that has certainly rung true. It was not a coincidence that the Toyotas and Nissans of the 1970s appeared to emulate popular American cars of the time and incorporated features invented in Detroit.

Whether this upward move for Tesla’s stock is a sign of things to come as more car manufacturers show interest in accessing the Supercharger network, or whether Tesla will make any sudden announcements that would dampen this down is yet to be seen.

An interesting thing to observe, nonetheless!

Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Shares

NVDA Share Price Soars 11% after Report TSLA Share Price Rises Sharply amid News of Musk's Increased Stake in the Company AMZN Share Price Rises Nearly 8% after Report AAPL Share Price Falls 3% After Report Meta Share Price Soars to Record Thanks to First-ever Dividend

Latest articles

Indices

Nvidia's Successes Helps S&P 500 Price Reach Its All-time High

Yesterday, the price of the S&P 500 stock index rose to record closing highs on Thursday. Moreover, such a growth rate (+2.11% per day) has not been observed for 13 months. Reasons for Extremely Bullish Sentiment: → Nvidia's

Forex Analysis

Market Analysis: AUD/USD and NZD/USD Grind Higher Steadily

AUD/USD is moving higher and might rally if it clears 0.6600. NZD/USD is also rising and could extend its increase above the 0.6220 resistance zone. Important Takeaways for AUD/USD and NZD/USD Analysis Today· The

Forex Analysis

Commodity Currencies Strengthen after the FOMC Minutes Publication

The fundamental data of recent trading sessions contributed to a slight strengthening of commodity and European currencies. Thus, the AUD/USD pair, after forming a bullish engulfing combination, managed to confidently gain a foothold above 0.6500. The pound/US

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.