Tesla is one of the leading names in the EV world, but should you buy Tesla stock or look for another stock for your investment?
Over the past dozen years, Tesla has faced many challenges, shown its expertise in advancing electric vehicle technology, and brought new models to the masses. Whether the company has faced troubles caused by its polarizing CEO or concerns over the safety systems operating in Tesla EVs, the stock price has generally stayed consistent, offering profits and dividends to investors regularly. Does it make sense for you to invest in this sometimes controversial company and its leadership?
Pro: Tesla has a strong brand presence
Tesla is a well-known entity and globally recognized as one of the leading names in the electric vehicle market. Most start-up automakers face challenges when going against Ford and GM, which have gripped the American domestic auto market for more than a century. Tesla brings a different set of rules to the game, never making a gas-powered vehicle. Instead of being ahead of Tesla, Ford and GM have had to scramble to catch up. The Tesla name is recognized globally and has become one o the leading names in the EV market.
Con: The Elon Musk Show
We can assume that most billionaires are Alpha personalities with great expectations and a ton of self-confidence. This can sometimes get these rich people into hot water and cause issues. Twitter, before it was owned by Musk, used to ban the Tesla CEO regularly for his comments or Tweets. Musk has been investigated repeatedly for his actions and comments, some of which has led to serious fines. Can you get past the Elon Musk Show to find Tesla stock worthy of your investment or will you look elsewhere to put your money?
Pro: Tesla makes exciting EVs
The head start and development of Tesla EVs puts this brand ahead of traditional brands by several years. Although the Nissan Leaf is the best-selling EV in the world, Nissan didn’t develop the batteries, technology, or drive systems with the same enthusiasm as Tesla. When a consumer drives a Tesla EV, they’re offered a unique experience with high-end electronics, the potential of incredible speed in the Plaid trims, and special features. No matter how you feel about the CEO and his antics, Tesla churns out impressive, exciting, and alluring electric vehicles which puts them ahead of most automakers.
Con: Legacy automakers are catching up
The time to invest in Tesla stock was when it first hit the market, but that’s several years in the past. Investing in Tesla today might yield some profits, but not the same record figures as before. Today, nearly every automaker offers at least one electric vehicle with several others planned and on the way. GM started with the Chevy Bolt EV and added the GMC Hummer EV to the mix. In 2024, GM will unveil several new EVs to bring more electricity to the market. Ford is following a similar path as is Volkswagen and other legacy automakers, which puts Tesla in a tough spot.
Pro: A small lineup leaves room for growth
While traditional brand names have had to cut back on model offerings and changed production goals to focus on EVs, Tesla charges along and adds new models to the mix, which should increase profits and stock prices regularly. The long-awaited Tesla Cybertruck is finally on its way and the Semi-truck program has begun showing some promise. Tesla only offers four passenger vehicles, which leaves room for expansion where other automakers must shift resources or retool to support new EV products.
Is Tesla stock a good buy?
The final answer to the question is that Tesla stock is a good buy and offers strong potential long-term value. Investors starting their new investment now should not expect the same profits and dividends experience during the past decade. One of the best methods to invest in this stock will be through accumulating stocks while the price is in a specified zone.
Tesla continues to show promise and growth with new products, better technology, and more affordable prices. Despite his downfalls, Elon Musk is an intelligent business leader and understands how to stay ahead of the competition. The recent price reduction of Tesla EVs is proof of this. If you’re looking for a good investment in the automotive world, Tesla offers some good qualities and could be a strong stock leading into a much more EV-heavy auto market.
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