Is Tesla Motors Still a Good Investment?

Tesla Motors is based in Palo Alto, California and this company represents what many consider to be the next generation of vehicles. Founded in 2003, the already-renowned firm focuses its efforts upon clean energy sources such as electric motors and lithium-ion batteries. Its developers have enjoyed success in recent years thanks to the affordability of these units as well as a mass of positive publicity. Last night, Elon Musk announced he will be leaving Trumps’ advisory council as the U.S pulls out of the Paris Climate Agreement. We take a look at the “green” business to determine whether or not it is a sound investment for the future.

A Brief History of Tesla Motors

Although first established as an entity no less than 14 years ago, it wasn’t until 2008 that Tesla Motors gained fame thanks to the release of the Tesla Roadster. This vehicle was essentially the first electric sports car to hit the American markets. This followed with the Model S in 2012. The Model S is thought to be one of the best-selling plug-in cars behind the Nissan Leaf. The company publicised its IPO status in 2010 and due to increased global recognition, its total current equity is said to be inn excess of $4.75 billion dollars.

Upcoming Products Continuing to Tempt Investors

Those who have invested in Tesla are likely keen to capitalise upon its technological advancements. This is why it is critical to point out that Tesla is currently involved in much more than manufacturing green vehicles alone. For example, they launched an autonomous car as far back as 2014. This so-called Tesla Autopilot is expected to be within the markets by 2019. Another interesting foray that Tesla has made is within the world of glass intended to be used within domestic solar panels. Dubbed “Tesla Glass”, this substance will be embedded within roof tiles. Other appealing actions of the firm include partnerships with both Panasonic and Airbnb.

The Future

Many investors are [understandably] concerned about the disappointing news emerging from the recent climate summit. Indeed, there has been a good deal of concern in relation to what impact the decision of the Trump administration will have upon companies such as Tesla. It seems as if Musk has also picked up on these undercurrents. The question is whether he is leaving out of a disagreement in principle or because he is concerned about the future of Tesla, or both. Lookers on should keep in mind that Tesla is a diverse firm. Colin Cieszyynski, analyst at CMC Markets initially pointed out the demand for green technologies such as solar power is still quite strong. It is critical to mention here that companies such as Canadian Solar are reporting strong earnings. The real conundrum will be whether Tesla Motors begins to outsource their products and innovations to international customers.

A Sound Investment?

This brings us to our final point. Is Tesla Motors still a good investment? From a traditional point of view, the answer still seems to be yes. We must appreciate that while the United States government has taken an anti-climate change stance, individual states such as California have already stated that they will adhere to the Paris Agreement. Furthermore, it is not entirely out of the question that Tesla will soon market their products to other economies such as China, Canada and the European Union (to name only a few). Considering the track record of Tesla up until this point, the future still looks bright.

Photo: Hans




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