$Tesla Motors(TSLA)$ Can Tesla continue to grow at an exponential rate?
It seems that the market for the last few years has been extremely volatile and TSLA has dropped and risen to all times high of $400+ and down to lows of $!00 and then now in the $250s.
By trading the dips and rips the returns would have made is a multibagger stocks.
Yes, it is clear that TSLA is a great company, considering that Model Y has become the most popular car in the world and one of the world most value and cost efficient company for a electric car. It is also worth noting that the market is also becoming competitive with BYD, FORD, TOYOTA coming up it will be a matter of time that the market becomes divided.
My view is that a electric car is an electric car, overtime competitors will catch up and the pie will be divided and profits will be limited.
The moat of TSLA today is considering it low manfacturing cost and being the 1st mover advantage. Also the world is moving not as fast towards adoption of EV and the market is not yet saturated.
The downside to TSLA would be that they are still very much stuck in the development phase for autonomous driving and so far has not shown the wow factor in comparison with competing companies like Baidu, Google, amazon who already having working vehicles that are in operation and ferrying passengers around, albeit that the system does not look as elegant as the promise TSLA system. My view is that better to have functional system then one that is somewhere there yet not there.
In conclusion, buy TSLA for that continuous growth antcipated but don't expact any big growth from the fundementals approach until the Autonomous driving problem is solved soon. If there is a better company that could be potential multibagger i.e. PLTR better to go with that.
Comments
Tesla's Cybertruck and Model 2 will drive sales growth this year, while charging station partnerships with automakers could contribute an additional $3 billion in revenue.
With a dominant market position, Tesla is poised to capitalize on its EV success. Confident in its prospects, I recommend a buy-equivalent rating with a $300 price target for the third quarter.
Apples first product was a computer- No one today thinks Apple as a computer company. 20 years from now Tesla will not be thought of as a ev maker. At that time Tsla will be the most valuable company in the world
This 3rd quarter is also stage 4 in the bear market, Tesla going to $80 by end of Q3
Right now is the perfect time to jump on the TSLA train at the opening today! They're goin' up and up, making their investors smile from ear to ear.
I think that was when it was a growth company at the high of the covid markets..Pretty sure, now its just another car company, I am told