Tesla Stock: Is it Worth Buying in 2021?

December 31, 2020

Damyan

Written by Damyan I write this stuff. Enjoy You should follow them on Twitter

2020 was the year for Tesla stock. The stock increased 10 fold, in fact. A truly successful year. Especially after the biggest smear campaign ever. In spite of all the doubt, the market has spoken. And Tesla stock has skyrocketed. Boosted by the S&P 500 index inclusion. As well as massive deliveries and accelerating growth. Now the real question is Tesla a buy for 2021? Here are a few potential catalysts for Tesla stock in 2021.

Deliveries

In 2020 Tesla produced around 500 000 cars. However, the production capacity rose to 840 000 in Q3 2020. According to the Q3 2020 earnings. Additionally, Tesla is finishing 2 more Gigafactories. And expanding the Shangai and Fremont Gigafactory. Over 1 million production capacity is highly likely for 2021. Half a million in China alone! Tesla stock will rise if they double production in 1 year.

Full Self Driving (FSD)

Tesla released FSD beta in 2020. Soon FSD goes mainstream. How soon? The odds are 2021. Why? Firstly, beta testing is the final phase of software testing. It is conducted by the end-users. And the beta testers are extremely impressed. Consider clicking here for awesome FSD testing. Secondly is Tesla’s data lead. Which is absolutely huge. Everyone else hasn’t even started yet. Above all is the technology. Humans use their eyes to drive. Tesla uses cameras. And they work in the same way. There is a reason why we use vision. Because it works. In contrast to Lidar. Which exists only on iPhones and Tesla’s competition. And doesn’t work when it’s raining. Or snowing. Or on unmapped roads. Full-self driving will be the biggest catalyst for Tesla stock. Possibly the biggest stock catalyst ever.

New Batteries

Next year Giga Berlin is making Model Y with the new battery. This was announced by Elon Musk a few days after battery day. When they said this technology is 3 years away. Elon says it’s difficult to estimate. And I think he’s sandbagging. They are launching the most advanced car ever in 2021. A definite catalyst for Tesla stock.

Solar Production Ramp

In 2021 Tesla stars ramping up Solar Tiles. According to Elon Musk on the companies Q3 earnings call. Currently, energy production is not accounted for in Tesla’s market cap.

 

Disclaimer: The author has a position in Tesla stock.

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