Analysts predict next 12 months could be most lucrative for Tesla CEO Elon Musk, Trending News

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The next 12 months could be most lucrative for Tesla CEO Elon Musk as per a prediction made by analysts.

The US electric carmaker delivered more than 936,000 cars of all models in 2021, an increase of 87 percent over the previous year, the company said in a statement.

It was the sixth consecutive quarter that the world’s most valuable automaker posted record deliveries. 

“With Tesla’s growth trajectory, I’d be surprised if he doesn’t get all five tranches this year based on hitting all the triggers,” said Dan Ives, tech analyst for Wedbush Securities.

Tesla has managed to overcome global logistics issues that have plagued the auto industry. 

The company’s ability to design components in-house gave the automaker agility in making tweaks to parts and coping with supply chain issues that hit other automakers much harder.

Also read | Elon Musk’s Neuralink to start clinical trials of implanting brain chips in humans

Musk will reap benefits of Tesla’s strong financial results as he still owns more than 170 million Tesla shares, about a 17 percent stake in the company, according to the US Securities and Exchange Commission.

The zany billionaire, the world’s richest man with a net worth of around $300 billion, has sold 4.5 million shares in the past couple of months.

His federal tax obligations could be as high as 40% on proceeds from some of the sales, said Brad Badertscher, an accounting professor at the University of Notre Dame.

Also read | Out-of-control rocket by Elon Musk’s SpaceX puts India’s Chandrayaan in danger

Musk’s wealth has swelled with the recent surge in Tesla’s stock price, from about $130 at the start of 2020 to $1,222.09 last Friday.

“He’s shown himself to be a master of influencing the price of Tesla stock,” said Erik Gordon, a University of Michigan business and law professor.

“That’s the story over and over again,” he added.

Tesla got another boost in October when it received an order for 100,000 electric vehicles from the rental company Hertz, to be completed by 2022. 

This announcement brought the automaker into the very select club of companies worth more than $1 trillion on the stock market. 

 

(With inputs from agencies)



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