Why $TSLA and $COIN Have Enough Room For Growth
The world is witnessing significant technological changes, and both companies are at the forefront of these changing trends. $Tesla Motors(TSLA)$ has become synonymous with the transformation of electric vehicles, although early investors have already made considerable profits, the company has not yet fully realized its potential. Meanwhile, $Coinbase Global, Inc.(COIN)$ provides investors with a promising opportunity of higher growth.
Let's take a look at why $Tesla Motors(TSLA)$ and $Coinbase Global, Inc.(COIN)$ have enough room for growth.
Promoting the Electricity Revolution
Few other trends have received as much attention and developed so rapidly as electric vehicles. By 2023, nearly a fifth of the cars sold globally will be electric vehicles, compared to only one in ten two years ago.
In addition, the adoption rate of electric vehicles is increasing exponentially. Analysts predict that by 2030, electric vehicles will account for nearly two-thirds of global car sales. Startups and traditional car manufacturers are clamoring to seize market share. However, large-scale production of electric vehicles poses challenges. Ford Motor Company reported an average loss of $36000 per electric vehicle sold in the previous quarter. New startups have also embarked on a similar path, with Rivian Automotive losing about $32500 and Lucid Group losing an astonishing $227000 per vehicle.
However, one electric vehicle manufacturer stands out: Tesla, with a profit of approximately $8400 per electric vehicle sold. Tesla has become one of the few profitable pure electric vehicle manufacturers, while also possessing the highest gross profit margin that can compete with traditional car manufacturers.
With the increasing adoption of electric vehicles globally and Tesla breaking new technological frontiers, investors should view the drop of over 40% in stock prices from historical highs as a once in a blue moon opportunity.
Unleash potential
The encryption industry is completely transforming the financial industry in a way similar to how the Internet changed communication, with an expected compound annual growth rate of 30% over the next five years. In addition, technological progress has laid the foundation for new innovative applications, such as tokenization of assets such as bonds or real estate. As more and more people, companies, and even governments begin to recognize new use cases, few other companies can benefit as much as $Coinbase Global, Inc.(COIN)$.
$Coinbase Global, Inc.(COIN)$ no longer relies mainly on transaction fees, but has launched various innovative solutions, including international derivatives exchanges, new subscription services, and institutional custody programs. In addition, Coinbase has expanded its business to over 34 countries. The situation is improving. $Coinbase Global, Inc.(COIN)$ has significantly reduced costs, with positive EBITDA for three consecutive quarters.
Due to this new momentum, Coinbase's stock price has risen by over 190% this year, with a current trading price of approximately $100. However, the stock price is still far below its historical high of nearly $350.
With the possibility of a bull market looming, Coinbase's stock price is likely to soar to historic highs.
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