$TSLA is on a roll…for now

Tesla is the first company in the United States to mass produce just electric vehicles. The fleet does not include hybrid or gasoline power vehicles, which has been the fleet of many of Tesla’s competitors. Other car companies do sell electric vehicles now, but not to the scale as Tesla. The company has enjoyed almost a monopoly status in the EV market because of its volume and outsized brand.

Credit: The Street

Tesla has a different business model that traditional cars makers. General Motors produces cars and sells them to a dealership, then the dealership sells them to the end consumers. Tesla on the other hand sell directly to the consumer and does not have a dealership middleman that makes a cut of the profit. Tesla also produces most of its parts in a vertical supply chain instead of subcontracting parts like other manufacturers.

$TSLA is a favorite stock from retail investors and professional investors alike. The stock just keeps going up and up and up! Although, one thing to consider is that Tesla just started to make a profit and that took 18 years to do! Also, other major car companies are starting to change over their production lines to create EVs. General Motors is building two massive battery plants to compete with Tesla. Once these more established car manufacturers come online and only product electric vehicles then we will see how Tesla compares to the competition. As of now, Tesla is a good buy and the stock is very popular, but as the car giants start to catch up, Tesla might be left in the dust. What is your experience with Tesla? Do you think the stock price is a good representation of the company or is it overvalued?

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