There is no question as to whether Tesla has been a good buy up to this point. After going public at $ 17 a share in 2010, Tesla is now trading above $ 684 a share. But historical numbers are not indicative of future growth. Should you buy Tesla stock? Elon Musk’s electric car empire continues to grow, innovate and enrich investors, so there are many reasons to be optimistic.
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Last updated: May 4, 2021
Cars sell like crazy
It’s hard to argue with success – ten years from now, Tesla is selling cars as fast as it can produce them. In early October, the company released third-quarter reports and announced shipments of 139,300 units. That was enough not only to surpass Wall Street’s expectations of 137,000, but to break Tesla’s previous quarterly record of 112,000.
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Tesla is adaptable
The previously mentioned shipping statistics represent the third straight quarter in which Tesla performed better than expected – and it was not just three quarters. Tesla managed not only to break its own record for shipments per mile, but also achieved 40% year-on-year revenue growth for the year, driven by social, political and economic turmoil and widespread consumer concern. If this is the bar for the worst of times, what is Tesla capable of when the sky is clear?
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It is a diversified company
About 80% of Tesla’s total revenue comes from cars, but it is a diversified company that offers investors the opportunity to acquire an interesting range of new and emerging technologies with a single stock purchase. Tesla designs and manufactures its own battery systems and solar power equipment, as well as injection stations, car service centers, and software and hardware for self-driving cars. In total, Musk estimates that there are more than a dozen startups under the Tesla brand.
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His cars can be a valuable asset.
Carmakers have experimented with electric vehicles, solar power and autonomous driving long before Tesla came along, but Elon Musk is doing something that literally no automaker has done before – making cars value assets. It is common knowledge that all cars lose value as soon as they leave the parking lot, and within a few short years, only a small fraction of their value remains, even if they are carefully maintained. Elon Musk insists that Tesla cars are becoming assets that grow in value over time, and that his cars will become a legitimate valuable asset when fully autonomous driving becomes a reality.
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Tesla has big plans for the future
Tesla began construction of its third plant last year. The site near Berlin is still under construction as it is being delayed due to problems with obtaining permits. However, this is all part of a bold and ambitious plan to produce 20 million electric vehicles a year over the next decade. This is double that of the dominant automakers today. Now that Tesla has a presence in Germany, it will compete not only with America’s leading auto companies, but also with companies such as Daimler AG, Volkswagen and BMW in Europe.
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Elon Musk factor
The last and biggest reason Tesla stock is still popular is the person behind the mechanism. Like Steve Jobs was for Apple and Warren Buffett was for Berkshire Hathaway, Elon Musk is more than just the founder of Tesla – he is his life force. A tireless worker and a tireless innovator, tamed only by the limits of his imagination, Musk has revolutionized road travel and space travel, the latter through his company SpaceX. Like Amazon’s Jeff Bezos, he suffered a series of major setbacks. But just like Bezos, he has shown incredible resilience, he predicted and prepared for future trends, and he proved too many times that skeptics are wrong to ignore them.
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This article first appeared on GOBankingRates.com: 6 Reasons Tesla May Be The Stock You Should Buy