Can TSLA Compete in the Long Term?
Tesla took electric vehicles seriously early on, which gave it an edge over its competitors. Even now, Tesla still does not face any significant competition from its main competitors, and the company has essentially dominated the EV industry. Moreover, Tesla has the most advanced self-driving features of any car and one of the lowest maintenance costs. They’re essentially doing to EVs what $Apple (AAPL.US)$ did with phones, offering user-friendliness at a premium.
Tesla’s competitors will undoubtedly catch up in the long run. However, $Tesla (TSLA.US)$ will still command a significant portion of EV sales due to its popularity alone.
TSLA’s growth prospects also seem to be very promising. In 2021, Tesla produced over 930,000 cars. Moreover, it aims to reach 20 million EV sales per year by 2030 , and at Tesla’s current growth rate, it is definitely possible.
One should also note that Tesla is not just an EV company. It produces many energy products that add to its revenue, such as solar roofs and storage or charging solutions. They will also undoubtedly profit from the world’s transition to renewable energy. In short, I believe that $Tesla (TSLA.US)$ is here to stay for the long term.
$Tesla (TSLA.US)$ is still a risky buy in the short term due to the market’s uncertainty. However, I still believe that in the case of a market crash, $Tesla (TSLA.US)$ will still inevitably recover. If a recession does not occur in the near future, the stock will likely reverse trends due to rising gas prices and soaring sales.
I do believe that in the long term, it can return a lot of profit. For the short term, making big moves in the current uncertain market is still very risky and should be avoided. Thus, I believe that anyone that seeks into invest in $Tesla (TSLA.US)$ should not invest large amounts of capital. At least until the market shows more stability.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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TeslaSmurf : The media is talking about the “competition” catching up… AGAIN…
When will they understand that there is NO possible competition ?
The OEM will have only Tesla’s leftover or the portion of the market Tesla is not capable (or willing, for the moment) to cover: lower margin cars for the Chinese and “niche” cars for the others. Wolkswagen is trying to move on, but it’s FIRST plant for EVs won’t be ready to ramp up before 2026 while Tesla is ready NOW (opening the two biggest car factories in Germany and Texas, and expanding Shanghai). When the “competition” will be ready to produce 500,000 cars per year, Tesla will be producing 5 million and growing even faster. Without considering that Tesla has ALREADY massive margins, while the others are LOOSING money for every car they make (more and more debit).
There is no possible catch up.
Asialie : Tesla's technology has been stable.
TeslaSmurf Asialie : No one has Tesla’s technology. Lucid seems to have a good powertrain, even if the quantity of batteries and the weight of a Lucid Air (180k $) are much bigger than those of an S Plaid (130k $) which remains unbeaten. The Air is a great car, but it’s a “niche” luxury vehicle that they won’t be able to build and sell in large numbers. Not enough to make money and finance the production of a mass (though expensive)-EV like the model 3 or Y. A NICHE car builder… for now.
Asialie TeslaSmurf : LUCID is far ahead of others in terms of performance and cost performance.
TeslaSmurf Asialie : It is simply not true:
The Lucid Air BEATS the model S Plaid in THREE things:
- Price: + 50,000 $
- Luxury of the interiors
- Wheight (for the size of the battery) + half a ton to carry around.
The model S is way quicker and has much more advanced technology. The Lucid cannot make on-the-air settings yet and is far away in the drive assisted system, not to mention the Ai Tesla is developing with it. In any case Lucid is producing just a few cars AT LOSS (they should produce 20x what they do just to cover the investment) while Tesla is on the 1,5/2 million run with more than 30% of margin on each car they sell.
Which one do you think is going to have the best results and which stock do you think is going to skyrocket as soon as the analysts perceive they are really going to build more than 1,5 million cars in 2022 ?
I ONLY trade and hold TSLA: there are many other ways to loose money instead