Arguments for the High Price of Tesla Stock Essay

Tesla is taking account of its accounting errors or scandals. Accounting errors always happen in the in each activity that Tesla undertakes, but not all errors may be the same. Numerous of the accounting errors are insignificant which can be easily managed through Tesla's annual audits. If not controlled at that time they will emerge to be complicated and serious in that can alter Tesla's stock price from increasing. The ability of Tesla to control the mistakes of accounting efficiently in its annual financial audits will see the company continued making profits. With the continued making of mitigating of accounting errors, Tesla's stock prices will tend to go high due to the persistent the company has been able to provide in its accounting errors that accrue in its financial operations.

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A change in management of Tesla company regarding its structure reorganization. Tesla's change into new management may see the price of its stock increase. It is with a purpose that the new management will have to lay a good base for the price of the stock to increase in the markets. New strategies are coming into place to do away with old strategies that were decreasing the company's stock price. Through the new management's strategies regarding stock will see how to deal with the corrupt system of Tesla operations that leads the company downfall of the price of the stock to increase in its long-run and short-term management objectives.

The announcement of dividends by Tesla company. The announcement of dividends by Tesla will see the company's stock prices go up. It is with a purpose that the current shareholders will tend to buy more and receive dividends according to their shareholding in the company. Additionally, announcing dividends will see new shareholders wanting to make purchases as the company is a profitable institution. Everybody wants to be associated where there is a reward. Automatically it will see that Tesla's stock prices shoot up.

Tesla introduction of new product or product recall in the industry. The intention of the company to introduce a new product to the existing products where it has invested will tend to increase the company's stock price. The new product is thought to increase the company's total sales as well as profits. Through high profits realized by the company through recalling of the company's product will alter an increase in Tesla stock pricing. An introduction of a new product by a company is purposely to raise more capital in that can result in realizing more profits from investing in the product. Investors will tend to buy shares that will result in the price of stock increasing.

Tesla is securing a new large contract. Through business contract approval announcement normally alters the stock price and it is essential to investors. It is purposely that investors will directly and explicitly increase Tesla's future cash flows without distortion by the managerial board. Establishing on how to secure of new large contracts is outlined in the literature where security markets adjust rapidly on the entrance of a new large contract. In the process of adjusting it will tend to increase the price of the stock of Tesla.

The probability that Tesla will release profits and earnings and future estimated earnings through the news. Through news, the company can inform the public of its financial progress. For instance, quarterly, semi-annually, and annual reports through news are essential in providing updates concerning Tesla financial status to future potential shareholders on whether to make purchases of the company's stock. Tesla stock prices tend to increase when the reports provided shows the company is generating profits from its investments. More shareholders will tend to buy the available stock after realizing Tesla company makes profits continuously. It will force the company to raise the stock prices to generate more capital.