Reasons Retail Investors Should take Advantage of the Tesla Opportunity
Invest in Tesla and Be Part of the Tesla Opportunity
Discover why retail investors should ignore unwarranted negativity about Elon Musk and make informed investment decisions. Learn about the benefits of investing in and embracing Tesla.
Since first bursting onto the business scene, Elon Musk has been a controversial, polarizing figure in the business world and public eye, amplified more so since he purchased Twitter (Now known as X) and the recent publication of the Elon Musk biography by Walter Isaacson titled simply Elon Musk which in recent weeks has been excerpted liberally by the press and social media.
Elon Musk biography by Walter Isaacson
As Tesla's CEO, he has faced immense criticism, skepticism, and negativity. Some are fair and factual, some are just headline clickbait with made-up or completely false content to either feed a preconceived narrative, generate Ad web traffic, or support hedge fund short positions. Tesla is the most shorted stock in history, even by Earth advocates like Bill Gates.
Regardless, when it comes to investment decisions in Tesla, watching the popularity growth of the innovative Tesla Model Y and the newly refreshed Model 3, retail investors should rise above the noise to make informed decisions based on the company's merits, its outstanding management team, product development features of Tesla products, design, manufacturing processes, and innovation that range from AI, battery, automation, charging networks, direct to consumer and Tesla insurance to name some.
Sticking to investment principles when investing in Tesla, filtering out, and letting go of noisy external influences will enable retail investors to win over the long term.
“Concentrate on the fundamental strengths of the Tesla organization, its innovations, and its commitment to sustainable transportation and energy solutions.”
The Power of Ignoring Negativity
As retail investors, ignore the negativity and stereotypes that may discourage sound investment decisions. Elon Musk's public persona and endless whimsical yet controversial statements (Amplified via social media and the Press) should not overshadow the remarkable achievements of Tesla as a company.
Instead, concentrate on the fundamental strengths of the organization, its constant search for innovation, and its commitment to R&D to sustainable transportation and energy solutions, evidenced by the growing dominance of the world's largest Supercharging Network to Megapack and Powerwall products.
3 Reasons Investing in Tesla is a Smart Choice
1. Tesla is Eco-Friendly and building a Sustainable Future
Investing in Tesla is not just about supporting a successful company; it's also an opportunity to be part of a transformative movement towards a sustainable future. Tesla's commitment to developing electric vehicles (EVs) and renewable energy solutions is not only aligned with the growing global demand for cleaner transportation alternatives but also with initiatives to meet the quickly increasing challenges emerging from climate change.
By investing in Tesla, retail investors can actively contribute to mitigating climate change and promoting a more environmentally friendly society. Globally, communities want to find cleaner transportation solutions and Tesla EVs are becoming an increasingly attractive solution. The market and demand are growing fast, with Tesla leading the way in the Number 1 position in Norway, Australia, Germany, the UK, and the US.
Tesla is consistently delivering positive financial results making it an attractive investment option.
2. Tesla Financial Strength
Tesla revenue for the twelve months ending June 30, 2023, was $94.028B, a 39.99% increase year-over-year. Tesla's annual revenue for 2022 was $81.462B, a 51.35% increase from 2021. Tesla's annual revenue for 2021 was $53.82b a 70.67% increase from 2020.
The company's revenue growth, cash position, expanding market share, and continuous technological advancements provide strong indicators of long-term profitability. You can follow Gary Black (Future Fund) and Ross Gerber (Gerber Kawasaki), on X (formerly Twitter), both professional hedge fund managers, for their objective insights on Tesla as a long-term investment. Cathie Wood of Ark Invest has put forward a bear case of $1,400 by 2027 and a bull case of $2,000 price per share in September 2023.
3. Tesla Model Y: A Dream Solution
Recognizing the preferences and needs of millennials, Tesla introduced the Model Y, a versatile all-electric compact SUV designed to cater to their lifestyle. The Model Y combines functionality, sustainability, and cutting-edge technology, making it an ideal choice for those seeking a stylish and eco-friendly vehicle. In 2023 Model Y became the world’s best-selling car, an amazing feat for an EV considering how long Toyota held this position. With an affordable price, a roomy interior, quick acceleration, lots of storage space, and a leading-edge battery train the Model Y gives Tesla a significant competitive edge. In early 2024 an updated model Y will be available.
““For the first time in history, the best-selling vehicle in the world is electric. Tesla’s Model Y beat out the Toyota Corolla on the global sales charts. The Tesla Model 3 also ranked in the top 10”
Like all Tesla EVs, the Model Y is entirely electric, emitting zero tailpipe emissions, reducing carbon footprint, and contributing to cleaner air quality. Retail investors can actively support sustainable transportation and showcase their commitment to a greener future by purchasing a Model Y or supporting Tesla by investing in its stock.
The Tesla Opportunity
As retail investors, we recommend concentrating your focus on the positive and negative aspects of Tesla, devoid of sensational narratives, and considering the extraordinary potential opportunities Tesla addresses.
Do your own research, and you will find Tesla is well-positioned to emerge as a leader in many areas:
Artificial Intelligence (AI). AI is an area that will dominate the tech world for the next few years, and Tesla is laying the groundwork with its Supercomputing Dojo foundation, along with building significant data-center support. (Which more than likely will be monetized, possibly along the lines of Amazon’s AWS model, but the Tesla way)
Robotics. which also will be driven by Tesla's supercomputer Dojo AI neural-net processing capabilities, began going online in the summer of 2023 and will be more widely operational in early 2024.
FSD. AI will also play a driving role behind the success of Tesla's FSD, autonomous driving with its robo-taxis, and Optimus Robotics initiatives, as the massive amount of real-world data the company is collecting from Tesla vehicles will pay huge dividends down the road.
The Tesla Semi Truck. A true Class 8 truck is transforming electric power in the trucking industry. As with the EV car sector, Tesla is the leading driving force behind moving this traditional transportation sector towards adopting electric power as an option for the trucking industry. To demonstrate that Tesla Semis do live up to their hype, three PepsiCo Tesla Semis, currently participating in an independent test program, covered 1600 miles in under 48 hours with three complete charges and two brief range-extending charging stops.
The Cybertruck. The pickup truck from Tesla will debut this year. It represents a new huge growth opportunity. It has over 2 million reservations and expects to produce 500,000 units a year, once full production starts.
Energy. Tesla’s pioneering Energy division is in the early stages of transforming manufacturing of storage with its Powerpack, Powerwall, and Megapacks and of power collection/distribution, as well as building a real-time control and trading platform, “Auto-Bidder” based upon machine-learning to optimize and directly monetize these storage assets. According to Electrek, Autobidder has already generated over $300 million for its energy investors.
Super Charger Network. Tesla owns the World’s largest EV charging network. It has 50,000 charging stations worldwide, growing every week. It is quickly being adopted as the de facto standard with most other EV manufacturers like Ford, GM, and VW joining their standard and platform.
Wedbush Securities analyst Dan Ives, who has been covering Tesla for a long time, came out with a new note to clients today in which he stated that he believes the Supercharger network will represent 3% to 6% of Tesla’s total revenue or $10 to $20 billion in revenue by 2030.
Any of these areas could be profitable and exciting to invest in for the long term, and with Tesla, you are investing in more than just a car company. Once you get the hang of filtering the noise around Elon and Tesla and can remain focused on the fundamentals, with patience and commitment, you will grow your investment. The expected target stock price by 2027 is $1,400 in a bear case set ($2,000 in a bull case) by Cathie Wood of Ark Invest. She was the first to call Tesla the winner in electric vehicles (EVs).
Final Thought
Embracing Tesla empowers retail investors to invest and promote sustainability and in time, experience the rewards for doing so. By making informed choices, doing your research, and disregarding baseless criticism, retail investors can invest for the long-term growth of their money.
All investment strategies discussed are for informational purposes only and can involve risk and loss. Nothing contained in this website should be construed as investment advice.
