Tesla is a company that is doing something unique. They’re building all-electric cars, and they’re doing it with a lot of innovation and promise. But despite all the good news from Tesla, Wall Street still seems to be more bullish about other names in the electric car market.
Some reasons to stick with Tesla stock:
1) Tesla managed to build such an effective marketing machine. They have a great team behind them, and they use their reach to sell relevant products to their customers.
2) Tesla also has a clear business plan. They know what they want and can deliver it.
3) Tesla has a lot of experience with customer service. They know how to do things right and have an excellent reputation for responding to customer concerns.
4) Finally, Tesla is doing perfect things in the automotive market today. Its Model S and Model X product quality and technology are impressive.
5) Also, Elon Musk is a genius in running a company and has many experiences leading teams.
The group of 20, which of course, includes Tesla (NASDAQ: TSLA) along with BYD (1211. Hong Kong), Lucid Group (LCID), Gores Guggenheim (GGPI) – a unique purpose acquisition company combined with Polestar, Rivian Automotive (RIVN) and NIO (NIO) are valued at less than $1.1 trillion today. At the end of 2021, the organization was valued at over $1.5 trillion. These are the six most valuable EV names, in descending order of market value as of March 15th.
Tesla accounts for about half of the 2022 drop. It lost 22% of its value, nearly $240 billion. The rest of the 20 represents the other half of the market capitalization loss, dropping more than 40% of its importance for the year.
Tesla remains one of the least popular EV companies for bulls based on Wall Street ratings. Less than 50% of analysts covering the company rate the stock as a Buy. The average buy rating rate for stocks in the S&P 500 index is around 58%. In addition, analysts’ average price target is approximately $946 per share, an increase of less than 20% from current levels.
Tesla doesn’t look all that appealing, but US investors looking to increase speculative EV exposure should probably stick with Tesla. It is one of two EV producers that makes a profit. (The other is Hong Kong-listed BYD.) In addition, the more average price target and balanced ratings are an indication that Tesla stock is more mature and perhaps a safer EV option for tough times.
According to some analysts, if you want to stay ahead of the curve and invest in Tesla stock, you should do so. However, if you’re looking for a stock to hold, even if the market is more bullish on other electric vehicles, Tesla is a good option. The company has a strong track record and has shown that it can be profitable.