Tesla | Fundamental Analysis | NEXT TARGET | MUST READ ! ! !

Recently, the management of electric vehicle (EV) manufacturer Tesla made headlines again after CEO Elon Musk carried out a poll on whether he should sell 10% of Tesla stock. According to the survey, Musk sold about $5 billion worth of stock (which is about 2.6 percent of his stock after exercising his options). Those who have been following Tesla stock for a long time have often seen its price fluctuate dramatically depending on news or Musk's tweets.

Musk's last stock sale did have a small impact on the stock price in the short term, but in the long term, say 10 years from now, it is unlikely to have a significant impact on Tesla. Even after the sale, the founder of the company will still own a large percentage of his former stake. The main reason for the sale is to get cash to pay the taxes Musk has to pay since he exercised stock options that were expiring.

So this latest move doesn't mean too much on its own, and the company's long-term growth plans remain sound. What are these growth plans? And how might they affect the company's stock in the future? Let's take a closer look at Tesla's growth potential over the next decade and beyond.

In Q3, Tesla's revenue increased 57% year over year. Tesla executives have said that the company expects deliveries of electric vehicles to grow by an average of 50% per year over the next few years. In 2020, the company will deliver about 500,000 vehicles. As per awaited growth rate, the company could deliver 28 million cars a year in 10 years. To be fair, extending management's "several years" estimate to a 10-year estimate in this article is an extrapolation beyond what the company has said. So let's assume that in five years, the company's growth will have slowed to an average of 20% per year. So by 2030, Tesla will still be selling about 9.5 million EVs a year.

For perspective, that number is close to what each of Volkswagen or Toyota Motor sold in 2020. To sell that many electric cars, Tesla must first produce them. The company currently has a production capacity of about 1 million cars a year. It is building two new Gigafactories, one in Berlin and one in Texas. In addition, the company is going to launch new models, including the Cybertruck, Semi, and Roadster. In the coming years, Tesla plans to build at least two new Gigafactories, in addition to those already announced, although their locations have not yet been determined. Thus, Tesla has a lot of work and growth ahead of it in the next decade.

Tesla's long-term growth will not only come from selling electric cars. The company has established itself as a disruptor, and it can continue to live up to that image in the coming years. Tesla has several other potential areas for growth.

First, the company is focused on improving its autopilot and full-self-driving (FSD) features. To attract top AI talent, Tesla held an AI Day event in August. Notably, attracting top talent is key for Tesla to become a leader on the FSD front. Several automakers and technology companies are working to make autonomous driving a reality, and most of them have the financial resources to achieve this goal. Technological know-how may well separate the winner. Tesla is also expanding FSD beta testing to more drivers; this should help smooth out the process of spreading its FSD functionality.

Second, continuous improvements in-vehicle software and battery packs are needed for Tesla to maintain its advantage in EVs and FSDs, and the company is paying attention to those aspects as well. Other potential growth areas for Tesla are energy storage and solar panel deployment; the company is successfully growing in both segments.

Finally, Tesla is focusing on auto insurance as a growth opportunity. Obviously, the company plans to do this differently from traditional insurance companies. Tesla plans to use its extensive driver data, such as braking, turning, unsafe following, forward collision warnings, etc., to predict the likelihood of a collision and offer customized premium rates based on that. How Tesla handles this task remains to be seen.

Overall, Tesla has a lot to look forward to in the next decade and beyond. As the company moves forward on these fronts, its stock could continue to rise. The stock may not generate as much profit as it has over the past couple of years, since much of the growth is already priced in. Nevertheless, the company is well-positioned to generate earnings that exceed the market over the next few years.