There are two types of trolls on DriveTribe. There's the Land Rover troll and the Tesla troll. You can almost guarantee if you write any article about either of those subjects you will have a minimum of one of the two here. If you're writing about Tesla, you'll get someone complaining about the Tesla build quality. And if you write about a Land Rover, you'll get someone complaining about Land Rover's reliability. But here's the thing, people still buy them. In fact people are buying these vehicles more than ever.
Today I wanted to specifically focus on Tesla. Because Tesla has a habit of attracting bad media attention. In fact they have a bit of a knack for it. They attract ultra-conservative trolls and bad media. And yet after Elon Musk botched the Cyber Truck reveal, and forgot to mention that the end product will never look anything like what the original was revealed to be. Tesla as a whole seems to be doing better than ever. Even with all the negative share of voice both in the media and on the internet.
Tesla is doing so well in fact that the Tesla share price hit an all-time-high yesterday. The share price jumped 9.8% to hit $524USD. To put that in perspective Tesla's IPO in 2010 was $17USD and with only 13.3 billion shares. That means that in a mere 10 years Tesla's share price has leaped almost 30 times it's initial public offering. It also means that if you bought 10 billion of those initial shares you'd currently be the richest man on earth, in fact you'd be worth three times what Jeff Bezos is.
After the Cyber Truck's initial reveal Tesla shares went into a bit of a slump. So why and how have they recovered over the past couple of months? And why is it that the overall dividend earnings it's major shareholders are making are near zero.
Well let's explore the share price recovery to start with. And as you might've guessed, there are a couple of ultra complex factors that are increasing consumer confidence with a company like Tesla.
The first is solar power. Tesla is deeply invested in next generation renewable energy technology with their Tesla Battery 2 and 3. And funnily enough, worldwide those devices are outselling all of their rivals as a commercial and residential consumer product. Solar power uptake has been steadily increasing in remote areas as well. Queensland, Australia has experienced an 82% uptake of residential solar power state wide.
The second is overall vehicle sales. Whilst there have been insider complaints from Tesla about inefficient manufacturing processes which theoretically has been causing delays to long awaited vehicles like the new Tesla Roadster, the company's reported vehicle sales have never been better. In fact since Q2 2018, a mere 18 months ago, the companies total sales volume has doubled. That's a 100% increase in vehicle sales over 18 months, which in automotive is near unheard of.
Tesla attributes this to the launch of their long anticipated Tesla Model 3, which was intended to a far more affordable alternative to the Model S and Model X. As of Q4 2019, Tesla's global sales volume sits at 112,000 units. Which is admirable. To put that figure in perspective Jaguar's total sales volume during 2017-2018 was 176,000 vehicles. That means a manufacturer that's been around since 2008 is a mere 60,000 units away from overtaking one of the worlds luxury vehicle marquees, a company which has been operating for well over 60 years.
This jump in sales volume isn't going to continue. At the moment Tesla's performance is 50% growth year on year which if not for Volvo's stunning year (a similar organisation in current corporate responsibility values) would've made Tesla the fastest growing automotive manufacturer in the world. The remainder of the automotive industry though is poised to catch up with Tesla and it's current direct competitors. Long term though Tesla's silver bullet is it's tendency to be first to market, which brings me to my next point.
Investor confidence in Tesla is also bolstered by its tendency to be a future-proofed manufacturer. By that I mean that the majority of Tesla products are designed to be continually updated and changed as time goes on. Tesla's research budget last year alone was almost $1.46 billion USD, with the profits of the company only being a mere $1 billion USD. Tesla also prides itself on pioneering previously unseen products and services. Products like the Cybertruck and services like its soon to be launched subscription service. A feature of car buying which is predicted to take off in the coming 5 years.
Now there are bound to be naysayers here who will trump on about the bluster a market like NASDAQ can create. And how shares are essentially virtual currency which doesn't reflect what happens on the ground. Hence why the world got given the gift of market collapses such as Black Monday and the Global Financial Crisis. But it is undeniable that Tesla creates a compelling case for investment with its shareholders. And whoever controls the valuation of those shares seems to be doing an even better job of the long term growth of the company.
Either way, I can imagine a certain Mr Elon Musk sitting in his office at once of his multiple-billion dollar properties with a smirk on his face. Just thinking to himself, you all might think you're trolling me. But the truth is, I am the ultimate troll, not just of the internet, but of the entire world.