Why Tesla Stock Is A Buy has been battered recently. The company is still facing production issues with the Model 3, and that has caused investors to worry about whether demand will be strong enough to support Tesla’s operations going forward. This bears resemblance to a situation back in May when concerns about demand for the Model X also caused shares to plunge. However, it’s worth noting that in both cases, shares of Tesla have recovered. And there are several good reasons why investors should treat this as an opportunity to buy more TSLA stock instead of selling it—after all, it’s still one of the most important auto stocks you can own. Here are five reasons why TSLA remains a buy despite recent troubles:
TSLA Has A Solid Track Record Of Meeting Production Goals
Tesla has a bad reputation among investors in part due to the fact that it has missed a number of production targets over the years. However, it’s worth noting that this has been due to issues with meeting very aggressive goals, not because Tesla is incapable of producing vehicles. When Tesla acquired the Fremont factory from Toyota, the company had been struggling to produce enough cars to meet demand. Tesla had been struggling to ramp up production at the facility, but in the first quarter of 2018, Tesla exceeded the original target of 500,000 units in one year. This means that Tesla has been able to get production rates at Fremont up significantly. These production rates are expected to continue to increase over the next year or two, which will help Tesla meet demand for the Model 3.
Autonomous Driving Is The Biggest Growth Opportunity In Automotive
Tesla has been focusing on bringing fully autonomous driving to production vehicles. It’s expected that fully autonomous vehicles will be a natural extension of Tesla’s current Autopilot feature, which is currently in beta test mode. But fully autonomous driving will also be a feature that consumers will be willing to pay a significant premium for. It’s expected that autonomous driving systems will cost around $30,000 per vehicle. However, because Tesla is the first company to bring fully autonomous driving to vehicles, it will have a significant edge in this market. The autonomous driving market is expected to be worth around $7 trillion by 2050. This makes autonomous driving by far the biggest future growth opportunity in the auto industry.
Tesla Has A Solid Base Of Support From Consumers And Investors
Tesla has developed a strong base of customers and investors that are fiercely loyal to the brand. This means that Tesla will be able to meet any demand issues that it experiences due to capacity constraints. As Tesla scales up production, it will be able to reach a larger number of existing customers, especially those who have been waiting for their Model 3s or who were put on a waiting list for the vehicle. This will help Tesla increase sales, generate revenue, and improve its cash flow, which will help the company get through this difficult period. And because Tesla has a large and loyal fan base, it will be able to survive any financial shortfalls that it experiences due to production issues.
Tesla Has An Outstanding Culture And Company Culture Matters
Tesla is known for having a strong and positive corporate culture. The company is led by its founder Elon Musk, who has a high level of commitment to the company. This has helped Tesla recruit a large number of engineers, designers, and other employees who are passionate about the company and the work they do. This passion has allowed Tesla to create innovative products, including the first fully autonomous driving system. Additionally, Tesla has been able to transition from a company that was on the verge of bankruptcy to one with $11 billion in revenue in just a few years. This has happened despite Tesla’s relatively small size compared to other automakers. This kind of outperformance is typically associated with an outstanding corporate culture. Tesla’s strong culture has helped the company become a household name in the auto industry.
Tesla Is Still In The Early Stages Of Consolidation In The Auto Industry
The auto industry has already seen a great deal of consolidation, and Tesla is one of the most attractive targets left. The company is valued at $48 billion, which is far lower than the $60 billion or more that it would be worth if it was fully consolidated. This means that Tesla is still something of a bargain. It’s trading at around $300 per share, which is less than half of its all-time high of $457 per share. This means that there’s still room to grow. And the fact that Tesla is still in the early stages of consolidation means that it will be able to command a higher and more attractive price.
Conclusion
Tesla is a strong company that makes innovative and desirable electric vehicles. The company is also an important player in the autonomous driving market, which is expected to be worth trillions of dollars. Tesla has a loyal base of investors and customers and an outstanding corporate culture. And the company is still in the early stages of consolidation in the auto industry. All of these factors make TSLA a buy despite recent challenges.
