The ‘cult’ of Tesla, what next for the shares?
Tesla’s increasing sales and rising share price have convinced a growing number of investors and traders to buy its shares. We consider its rising popularity, future prospects and threats to continued share price growth.
A great company and a great investment are two very different things. For example, a business can have a dominant market position and stunning growth prospects. However, if its valuation is too high, it can prove to be a disappointing investment because its ‘best case’ future scenario has already been priced in by the stock market. In our view, Tesla Inc (US:TSLA) can be described as a ‘great’ company. It is extremely popular with consumers, operates in the rapidly-growing sustainable transport sector, and has a significant competitive advantage over many of its sector peers. However, its investment potential at this…