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Tesla Motors

Autor:   •  January 7, 2019  •  870 Words (4 Pages)  •  46 Views

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high as $377. In this manner, their stock have gained more than 62% over the past year so these is more than four times the gains for the benchmark. In this way, the company has attracted a lot of attention recently, Tesla became more valuable than other prestigious companies like Ford, General Motors, among others.

With that in mind, I would buy stock. There is no doubt that Tesla has a very talented executive team and they are extremely motivated to see the company succeed. Also it is rated first in the automotive market in terms of owner satisfaction, customers are loyal because they would buy the same brand if they had to to buy the car again. In addition, it has a complete control over the customer experience since it own a large network of chargers that provide the customers to charge their cars in different places so they can travel with problems around the world.

Moreover every move that Tesla makes is recorded in the media this allows the public to know all the movements done by the company. All in all, Tesla’s stock has a price that will increase massively in the next years. Nevertheless I am aware that there is a risk in the future; as I will explain later, if the company does not continue with its strategy efficiently, it can be copied quickly by other new companies in the market.

Recently, Tesla’s sales appear to skyrocket as it brings new vehicles to market. However, producing them in mass markets will be a new challenge for the company. For this reason, investors should consider this new risk for their actions. Equally with so much publicity and value assigned to the expected return, investors are in a difficult situation. Moreover Tesla is by far the leader in the battery powered electric cars besides the company will face intense competition soon due to new companies entering to the market trying to copy or to offer a new value proposition for the electric cars. However it should be noted that the company has a tendency to grow so they can remain an important player in EV market in the future as long as they continue innovating and efficiently carrying out their strategies in order to maintain the trend.

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