Why investing in Tesla stock could be a smart move despite its high valuation
As an avid investor, I have had a stake in Tesla (NASDAQ: TSLA) stock for the past four years. With a high valuation, many investors are still eager to jump on board and here is why.
The future of transportation
Tesla is not just a car company, but a transportation company, pushing the boundaries of what is possible in the industry. It is revolutionising the car industry with its electric vehicles, while also pushing for clean energy and sustainability, which is a big plus in today’s world.
The company’s CEO, Elon Musk, is a visionary who’s not afraid to take risks, making bold predictions and following through on them. I am excited about Tesla’s potential for growth with its mission to transition the world to sustainable energy.
Tesla is shaking up the traditional car industry. It is bypassing dealerships and selling its cars directly to consumers. It is also pushing for clean energy and sustainability. It’s no wonder traditional car companies are starting to feel the heat.
I am constantly in awe of the company’s innovative approach to the automotive industry. It’s thrilling to see it leading the way with the first fully electric luxury car, the Model S, and being the pioneer of a fully electric sports car, the Roadster.
Tesla’s bold moves are truly reshaping the industry. It is also the first to have a fully electric SUV, the Model X. I believe Tesla is revolutionising the car industry and leading the charge.
The numbers don’t lie: Tesla is killing it in the stock market
Let’s look at the numbers. The company’s market capitalisation is expected to hit $500bn in 2023. That’s some serious growth potential.
I’ve been a proud Tesla shareholder for the past four years and I must say, the company never ceases to amaze me. The future for self-driving and energy storage are truly exciting and it’s no wonder why analysts are optimistic about Tesla’s future.
Some even predict the stock price could hit $1,000 in the next few years.
The bearish side
As a shareholder, I’ve got to admit I’m feeling a bit jittery about the firm’s sky-high valuation. It appears to be trading at a price that a good many analysts consider it’s not worth. To add to that, Tesla is heavily in debt and has yet to turn a profit.
The saying “high risk, high reward” comes to mind here. Investing in a game-changing company like Tesla is always a gamble, but the potential for growth in the long run might make it worthwhile for me.
However, the same could be said for its forays into sustainable energy solutions, which could turn out to be a lucrative investment in the future. At the end of the day, investing in any stock involves a degree of risk.
The post Why investing in Tesla stock could be a smart move despite its high valuation appeared first on The Motley Fool UK.
Khadijah Jay has positions in Tesla. The Motley Fool UK has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
Motley Fool UK 2023