Tesla and the Stock Market

Abstract

Tesla has changed the way in which the world views sustainable energy since its inception in 2003 and has become a strong force in the stock market. Tesla focuses on building all electric vehicles as well as clean energy generation storage products. The success of Tesla has been proven in the stock market with their steady increases in stock prices and interest of investors. Tesla is a prime example of sustainable energy companies beginning to surpass investor interest in the auto industry as more and more people begin to focus on the environmental impact of gas vehicles. Tesla produced massive share increases in 2020 showing that investor enthusiasm was at an all-time high. In 2021, this began to change when the company shares dropped approximately five percent. As more and more companies begin to invest in all electric vehicles and they start to offer additional electric alternatives to their gas vehicles at a much lower cost, is it possible for Tesla to maintain their momentum within the stock market? Tesla needs to remain innovative if they want to stay ahead of their competitors. In this article we discuss how an increase in all electric competitors and COVID-19 has impacted Tesla in the stock market. We review if innovation can be the only tool for success in order for Tesla to continue surpassing their competitors.