Is Tesla Stock a Buy or Sell Right Now?
Tesla (NASDAQ:TSLA) is one of the hottest stocks on the market today, with the electric vehicle maker seeing tremendous success in its market capitalization, rising more than 5,000% over the past five years. Investors are wondering if the stock is still a good buy or if they should sell at current levels. In this article, we’ll look at the various factors underlying the Tesla stock to determine whether or not you should buy or sell.
Current Market Valuation of Tesla Stock
Tesla’s remarkable rise in market capitalization over the past few years has made it one of the most valuable companies in the world, with a market cap of over $800 billion. This omits the fact that the company has yet to turn a significant profit, prompting many investors to question whether or not the stock is currently overvalued.
Pros of Buying Tesla Stock
There are several pros of buying Tesla stock at current levels. Firstly, Tesla is leading the way in electric vehicle adoption, with its cutting-edge technology and design that are continually evolving. The company is also making significant strides in renewable energy, and its purchase of solar panel manufacturer SolarCity is expected to help drive growth in this sector. Additionally, Tesla’s widespread charging network and its highly successful Autopilot system are both positives that potential investors should consider.
Cons of Buying Tesla Stock
While there are multiple pros of buying Tesla stock, it’s important to consider the cons. The first and most notable is that Tesla remains unprofitable, with its high cost of production and R&D spending still not quite in stride with overcoming the cost of revenue. Additionally, Tesla has a rather volatile stock price that can be subject to wider market swings and sentiment. Finally, the company is targeting an ambitious production goal of 1 million vehicles in the next year and could be hit hard if they’re unable to meet this goal.
Factors To Consider When Deciding to Buy or Sell Tesla Stock
When deciding whether or not to buy or sell Tesla stock, investors should consider several factors. These include the current market valuation of the stock, past performance, industry trends, competitor analysis, and risk/reward preferences. Investors should also consider their own financial goals and risk tolerance when making the decision to buy or sell Tesla stock.
Review of Analysts’ Opinions
In reviewing analysts’ opinions, there is a rather even split between those who believe that Tesla is a buy and those who believe that it is a sell. On the buy side, analysts argue that Tesla’s strong fundamentals, ambitious target, and continued innovation make it a compelling investment option. On the sell side, analysts argue that Tesla’s current market valuation is too high and that the stock could take a hit if the company fails to meet its lofty goals.
Whether or not you should buy or sell Tesla stock depends largely on your own risk/reward preferences and financial goals. It’s also important to consider current market valuations, past performance, industry trends, and competitor analysis when making the decision. Many analysts are split between whether or not Tesla is a buy or a sell, so it’s important to do your own research to come to a conclusion that you’re comfortable with.