A Strategic Overview of Investing in Tesla Stock (TSLA)

Tesla Inc., a renowned torchbearer of the electric vehicle revolution, serves as a beacon of sustainable transportation and renewable energy solutions. Often equated as the most valuable automaker globally by market capitalization, Tesla Inc. (TSLA) designs, develops, manufactures, and sells avant-garde fully electric vehicles (EVs) and groundbreaking energy generation and storage systems.

Providing comprehensive services to its global customer base, Tesla extends its reach through a robust network comprising:

• An array of vehicle service centers
• In-house body shops
• Supercharger stations and destination chargers

Its diverse product portfolio comprises mid-size and full-size sedans, compact, and mid-size sports utility vehicles, each intricately designed to disrupt the automotive industry.

Crafting a Legacy: The Genesis and Journey of Tesla

In the year 2003, Tesla Motors was birthed into existence by Martin Eberhard and Marc Tarpenning. Not long after its establishment, Elon Musk, known for his investments in future-oriented technologies, stepped into the scene as an investor, soon morphing into the company's chairman. A legal battle later resulted in Eberhard retaining his co-founder status after resigning from the CEO position. Musk, alongside Tarpenning, and early members Ian Wright and J.B. Straubel, are now recognized as co-founders.

Despite starting with a singular focus on electric vehicles and related components, Tesla's ambitions were not limited to this sphere. The company eventually broadened its horizon, venturing into the domain of energy generation and storage products. Tesla's public debut unfolded on June 29, 2010, through an initial public offering (IPO), marking a significant milestone in its journey.

Anchoring its Presence: Tesla's Location and Competitors

In the year 2021, Tesla decided to uproot its headquarters from its historical abode in Palo Alto, California and replant it in Austin, Texas. Guided by the visionary leadership of CEO Elon Musk, Tesla Inc. continued to thrive in its new home. Being a part of the consumer discretionary sector, Tesla's stock garners significant attention from the investor community.

Tesla grapples with formidable competition from traditional automakers such as:

• Ford Motor Co. (F)
• General Motors Co. (GM)

The company also faces an onslaught from emerging and rapidly evolving EV manufacturers like:

• Lucid Group Inc. (LCID)
• China-based NIO Inc. (NIO)

Tesla's fiscal year 2021, which culminated on Dec. 31, 2021, was marked by the achievement of a net income of $5.6 billion on revenue totaling $53.8 billion.

Recounting Recent Milestones: Developments at Tesla

The year 2022 unraveled several pivotal events at Tesla. On Nov. 22, a significant development sent ripples through the business world as Elon Musk's net worth plummeted by $100 billion. Further, Tesla's Q3 2022 earnings, announced on Oct. 19, 2022, exceeded analysts' predictions in terms of EPS and car deliveries, albeit falling short on the revenue front, triggering a drop in Tesla's stock. Adding another feather to its cap, Tesla executed a 3-for-1 stock split on August 5, 2022, and began trading on a split-adjusted basis from August 25.

The Hurdle of Recalls: Confronting Challenges

In recent times, Tesla has had to grapple with recalls - an undesired facet of manufacturing. Ranging from small to large, Tesla has been subjected to several recalls. Some noteworthy recalls include:

• The China recall in September 2021, involving approximately 44,000 Model S and Model X vehicles due to suspension defects.
• A U.S. recall in February 2022, where Tesla had to call back around 54,000 Model S, Model 3, and Model Y vehicles over software malfunctions related to the Full Self-Driving (FSD) Beta system.
• A smaller recall in July 2022 involving 2,500 Model S and Model X vehicles due to potential issues with the power steering.

The Bitcoin Tango: Tesla and Cryptocurrency

The year 2021 witnessed Tesla’s investment of $1.5 billion in Bitcoin, inciting widespread dialogue. While this move spurred the cryptocurrency market, environmental concerns surrounding Bitcoin’s mining process led to Tesla’s suspension of Bitcoin as a mode of payment. However, Elon Musk hinted at a potential U-turn in this stance if Bitcoin mining could ensure about 50% usage of clean energy. This was substantiated by Musk's affirmation at a conference in July 2021 that Tesla would likely restore Bitcoin transactions given that renewable energy usage in Bitcoin creation reached or surpassed 50%.

Navigating Stormy Waters: Controversies Surrounding Tesla and Elon Musk

A cloud of controversy descended upon Tesla and Musk in September 2018 when they had to reconcile a civil securities fraud lawsuit filed by the U.S. Securities and Exchange Commission (SEC). This settlement saw Musk relinquishing his position as board chair, and Tesla agreed to reforms in corporate governance and accrued fines amounting to $40 million for Musk and the company.

Another controversy unfolded when The Wall Street Journal reported on June 1, 2021, that Musk had violated a court order requiring pre-approval of his tweets by Tesla's lawyers, not once but twice. Musk retaliated by launching a lawsuit on March 8, 2022, to terminate the SEC settlement condition, arguing it encroached upon his freedom of speech. Later, on April 14, 2022, Musk openly voiced his disdain for the SEC regulators.

Under Legal Lens: Tesla's Shareholder Lawsuit Regarding SolarCity

Elon Musk found himself in the midst of a legal battle initiated by Tesla shareholders that went to trial on July 12–13, 2021. The litigants alleged that Musk had manipulated Tesla's 2016 acquisition of SolarCity to salvage the struggling solar company while being at the helm of both entities. As of April 21, 2022, the final verdict in this case remained pending.

Some Key Facts about Tesla

• Has Tesla split its stock? Yes, Tesla has executed a stock split twice, once in 2020 and once in 2022.

• Does Tesla pay dividends? No, the company does not pay dividends.

• How many outstanding shares of TSLA are there? As of Oct. 18, 2022, there were approximately 3.16 billion outstanding shares of TSLA.

• Who is the CEO of Tesla? Elon Musk, who made a significant early investment in the company, is Tesla's CEO.

• Does Elon Musk hold any other title at Tesla? Yes, in addition to his CEO title, Elon Musk was conferred the title of "Technoking of Tesla" in 2021.