Tesla’s Bullish Pitch 🚗

Table of Contents

Tesla’s Bullish Pitch

Elon Musk has grabbed the bull by the horns in the second half of 2019, posting killer delivery numbers to resurrect Tesla’s share price from the doldrums of $178 to the sunny uplands of nearly $500. Way to go!

Despite this, Tesla continues to divide opinion like no other company. A stock market love affair for some, here’s the bullish elevator pitch for the ambitious electric vehicle (EV) maker. You be the judge!    

First and foremost, Tesla cars are a joy to drive. The company shattered the perception of electric cars as just whizzy golf buggies long, long ago, coupling revolutionary technology with an eye for design. But it’s not just the first mover. Tesla is ahead in nearly all aspects of original equipment manufacturing (OEM) in its niche, setting industry standards.

The firm has an innovative business model, too! In times gone by, a strike-prone workforce would build a car before revenue from its sale was split with sales reps. Then, dealerships enjoyed the recurring revenue of servicing, gas companies enjoyed the recurring revenue of fueling, and insurance providers enjoyed the recurring revenue of legal cover. It’s an automaker’s recurring nightmare!

But think, Tesla does its own servicing. Tesla makes ‘powerwalls’ and Super Chargers. Tesla is hiring from a non-unionized Chinese workforce. So long as the Silicon Valley giant continues to deliver incredible cars, economies of scale will allow all of that infrastructure to be built out more cheaply, and investors won’t be forced to share when it comes to profitability!

Finally, Teslites believe they have a once-in-a-generation visionary steering the ship. Elon Musk has skin in the game and routinely clocks 100-hour weeks to push his company to success. This is a romantic story stock, which for many investors, is priceless! But not all investors…

Share:
More Posts
Higher Rate Households 📈

The recent Fed decision to pause rates has left the federal funds rate at its highest level since 2000.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.