Summary
- Tesla’s future is based on more than just the up-and-down EV industry
- Tesla is seen as more than just an auto company by analysts
- Tesla could benefit greatly from zero-emission vehicle (ZEV) credits
- The company is investing in AI, robotaxi, and energy storage for future growth
- Despite challenges, Tesla remains a high-reward long-term stock for investors willing to take some risks
Article
Tesla has made history in the automotive industry by going against the grain and focusing on electric vehicles (EVs) when industry giants were still focused on gas-powered cars. Today, Tesla’s future seems to extend beyond just EVs, with the company delving into autonomous vehicles, robotics, energy storage, and more. Analysts believe that Tesla’s core auto operations are worth $59 a share, showing that the company has potential beyond just being an automaker.
One of the key ways Tesla is differentiating itself is through zero-emission vehicle (ZEV) credits. While many automakers have not focused on these credits in recent years, Tesla has been able to capitalize on them, with ZEV credit revenue doubling in the second quarter. Larger automakers like Ford are now purchasing regulatory compliance credits, indicating that Tesla could have a substantial share of the ZEV sales market in the future.
Tesla is also making strides in artificial intelligence (AI) and robotics, with plans to enter the robotaxi market. Analysts predict that the robotaxi market could be worth trillions in the future, and Tesla is using AI-based computing to develop driverless technology. While Tesla already offers driver assistance software, the company has plans to expand these systems in the future, potentially leading to significant profits. CEO Elon Musk has even expressed interest in investing billions in an AI start-up.
Another area where Tesla is making strides is in energy storage. With increasing awareness of climate change, Tesla’s energy storage division could become more valuable than its autos business. Despite facing challenges such as low quarterly profit margins and declining EV deliveries, Tesla remains an attractive long-term investment option. While the company’s growth is largely based on products and services that do not yet exist, there is potential for high rewards for investors willing to take on some risk.
Investing in Tesla now could be a strategic move, as slowing EV sales and weak growth rates are already factored into industry stock prices. Tesla should not be viewed solely as an automaker, but as a forward-thinking business that is at the forefront of AI, robotics, and driverless vehicle technology. While there are challenges ahead, Tesla’s position in these emerging industries could lead to significant long-term gains for investors.
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