Your guide: Is Tesla Stock a Good Buy?
So, you want to expand your portfolio and love cars? Are you a fan of Tesla? If so, you might be wondering if Tesla is a solid stock option for you. Talk about a brand that has gotten a huge amount of attention. Right?
Maybe this is the reason you’re here. Maybe you’re feeling the itch to invest. Well, lucky for you, today we’re going to answer the question, “Is Tesla a good stock buy?”
Keep reading to find out.
Also read: Tesla Says None of their $711 Million Bitcoin Was Sold in Q1 2024
The electric vehicle phenomenon
Listen, Tesla is a force to be reckoned with.
Whether you love or hate the company owner (Elon Musk), Tesla is all about the latest advancements and has quickly built a huge following.
Since hitting the scene and being at the forefront of manufacturing electric vehicles, Tesla has quickly become a huge brand to deal with in the EV space.
Tesla’s year-over-year growth
Our research shows that Tesla has overall had a great year-over-year growth history. This could be a great indicator in terms of having a historically healthy financial projection to base your potential investment on. Although their current stock prices might seem high to some, others would say that now is the time to get in on the action.
A quick note about Elon Musk
Elon Musk goes hand-in-hand with Tesla and its stock. He is the founder and CEO of all things Tesla. Love them or hate them, Elon has created a pretty incredible brand for himself.
Why is he important when thinking about investing in Tesla? Well, for starters, his name goes hand-in-hand with the brand. He’s recently been in the spotlight when it comes to taking over X, formerly known as Twitter, and quickly gained headlines as he morphed the social media platform as we know it.
All it takes to spook or help the market is one simple tweet.
So, if you cannot bear the thought of your SEO oversharing on social media, this might not be the best stock for you to bet on.
Tesla Shares fall by 30% in 2024
As of earlier this Spring, Tesla shares have fallen by 30%. Is it time to run? Probably not. Is it time to buy? Some would argue yes. In contrast, the company did rise by over 100% in 2023 so we need to take this with a certain amount of consideration.
Current Market Landscape
Two main driving factors are most likely affecting the company’s stock.
The first is the overall market sentiment as it relates to consumer demand. There’s a feeling in the market that overall electric vehicle demand has begun to dwindle. This, combined with the price tag of a Tesla, can make demand slow and stock prices lower.
Second, we need to remember about competitors from places like China. Tesla was at the forefront years ago, but being the first to market has its advantages and disadvantages. The biggest advantage is that you can take a ton of market share. The disadvantage is that you’re going to have so many copycats on your tail and it becomes increasingly challenging to stay at the forefront.
Is Tesla Stock a Good Buy?
Yes, Tesla is a good stock buy. Yes, we know it’s not the cheapest thing to buy on the market; however, if you think of their long-term strategy, they are far beyond what any other car manufacturer is doing in the elective vehicle world.
Plus, somehow Elon Musk (love ’em or hate ’em) can get things moving in the right direction should he put more focus on Telsa.
According to a former board member, the reason why Tesla has been increasingly falling behind is because its CEO has focused in too many other areas. His former board member, Steve Wesley, said “Don’t bet against the guy [Musk], he’s got a pretty good track record.”
Conclusion
In conclusion, given your risk tolerance, Tesla could be a great stock buy. Sure, it’s not going to be the cheapest thing to buy on the market; however, based on the year-over-year growth and the innovations coming out of Tesla, it’s just the beginning. If Musk can refocus and restrategize effectively, we will be sure to see some incredible things come out of the company and help drive stock prices. Remember, we have a guy who has a great track record, and because of this, it seems like he can take the company to the next frontier.
Happy trading!