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Investing in Tesla

Essay Instructions:

Tesla Motors is the “it” stock right now in the automotive industry. Tesla was a pioneer in offering cars that run 100% on electricity rather than gasoline, and it has also diversified into solar energy, purchasing the company SolarCity. Its stock price has risen high enough in recent years that it has surpassed automobile giant General Motors in market valuation.

However, not all analysts believe Tesla is a good investment at its current price. It sells less than a 100,000 cars per year, compared with General Motors which sells around 10 million cars a year. Unlike General Motors, Tesla has yet to earn a profit.

Here are some articles both pro and con about whether you should invest in Tesla. Take a look at these articles and also try to find some more recent articles on Tesla’s stock:

https://www(dot)forbes(dot)com/sites/johnwasik/2017/04/14/5-reasons-why-tesla-is-bubble-priced/#d0626b26c631

https://www(dot)smarteranalyst(dot)com/2017/03/16/5-reasons-excited-tesla-inc-tsla-stock/

Based on what you’ve read, do you think Tesla is worth its high valuation, or is it simply priced too high because it is considered new and trendy? Would you personally invest in Tesla, or would you prefer to invest in one of the more established auto companies such as GM or Ford?

Essay Sample Content Preview:

Tesla
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Tesla
Tesla is an automobile giant whose which has attracted worldwide attention. Different players are sharply divided concerning the company's stock value, with some advocating for the high value while others remain skeptical. While it is true that the high stock value comes from being new and trendy, other solid factors make the value of the stock high. The company is a world leader when it comes to the production of electric vehicles. It also uniquely stands out in operationalizing innovation and producing electric cars and does so on an immense scale. There are also reliable speculations that the company will achieve unprecedented growth in the coming years. Because most of the world is moving towards the promotion of clean energy, stakeholders from different parts of the world are advocating for using electric cars as they are more friendly to the environment than cars running on fossil fuels such as petrol. It follows that Tesla may make a large number of sales. Tesla also stands out regarding innovation (Agnihotri & Bhattacharya, 2022). The company is dedicated to developing innovative solutions that will help achieve the goal of cleaner energy.
One must consider a multitude of factors when deciding whether or not to invest. When considering investing in Tesla, it is essential to consider the view of polished investors, those for and those against. Investors who argue against investing in Tesla use the premise of the overpriced stock. Due to the notion of having a higher than actual value, Tesla's stock is relatively risky compared to other established companies such as General Motors and Ford. These investors also argue that the stock price is pegged on high future growth expectations (Wasik, 2017). Investors do not consider it wise to use future forecasts to overvalue the price of a stock. In addition, the investors are also skeptical since the company is young and has yet to make consistent profits. There is also a group of investors wh...
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