Business

Why Should You Buy Tesla (TSLA) Stock?

Tesla stock news is one of the news shares company and they were up about 2% for Tesla (ticker: TSLA) on Thursday that the company is beating the market’s expectations and posted a fifth consecutive quarter of profitability. California-based electric vehicle makers and clean energy company are specialized in the development, manufacturing, and sale of fully electric vehicles (EVs). These are providing vehicle service centers, supercharger stations, and cars with ever-improving self-driving capabilities along with solar energy generation and battery systems. In the third quarter, automotive sales are accounted for more than 80% of the company’s total revenue.

Tesla at a Glance

  • Tesla went public in 2010 and they are offering 13.3 million shares at $17 per share.
  • Tesla stock news shares are trading for around $435 per share, if you are purchased Tesla at its initial public offering price, your return on investment today would be more than 12,000%.
  • It has been a volatile road to this point, marked by a history of missed manufacturing deadlines, controversial comments, and a steady stream of reputable traders are denounced the company’s valuation and recommend shorting the stock.

Pros of Buying Tesla Stock

  • Tesla has a following among retail investors and millennial investors.
  • After it has TSLA’s 5-for-1 stock split in late August, younger investors are new traders on Robinhood. They may find investing in the company much less daunting than just a few months ago when the stock traded for more than $2,000 per share.
  • They are thinking auto manufacturers and suppliers focused on green and emission-free technologies, such as electric vehicles, would likely benefit.
  • This is including generous tax credits for consumers and manufacturers. It is also including building 500,000 more EV charging stations along U.S. highways.

Cons of Buying Tesla Stock

  • Investors will be tweeting after tweeting of problematic rhetoric from the company’s CEO. Perhaps the most infamous occurred in early August 2018 when the CEO tweeted that he was considering taking Tesla private at $420.
  • Tesla’s stock price is too high IMO. The CEO is shared with more than 36 million followers and caused the stock price to tank.
  • While plenty of analysts recommend investors are selling the stock based on these antics, the truly bearish on Wall Street goes even further by selling shares short. The controversy surrounding the company’s leadership is one of the big reasons.
  • A lot of the valuation is reflecting presence in (the) expectation that he will be continued to innovate and deliver long-term value for shareholders.

If you want to know more information relating to income statement of TSLA, you can check at https://www.webull.com/income-statement/nasdaq-tsla.

 

Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.

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