Is Tesla a Good Investment?

PHOTO CREDIT: Tesla

OVERVIEW

Tesla Incorporation is a technology company based in the United States. The company operates in the clean energy sector. It manufactures electric vehicles, solar panels and roofs, and large battery packs for residential and commercial use. The company also designs and distributes self-driving software for its vehicles. Its vehicle fleet includes the Model S, 3, X, and Y as well as the 2nd Roadster, Cybertruck, and Semi. The company was founded in 2003.

Why You Should?

  1. Tesla is a great long-term investment due to its future growth prospects. The clean energy industry is going to continue to rise as people and governments want to reduce the impacts of climate change. Tesla is arguably the best stock in this industry as the company will operate 4 car factories in the future and will have solid solar and power wall numbers. This will benefit investors as well.
PHOTO CREDIT: Yahoo Finance

Why You Should Not?

  1. Though Tesla has outperformed the competition, the EV space is starting to fill up with many companies. Companies like Toyota, Ford, General Motors, Nio, and Nikola (among others) are all planning to enter the field with some great vehicles. This might hurt Tesla in the future and might also hurt investors in the company.

MY OPINION

I think that Tesla is a great long-term investment due to good long-term growth prospects, a resilient business, a Biden administration, outperforming the competition, its lead position in the clean energy industry, and rising revenues and profits. However, tough competition might hurt Tesla in the future.