Tesla (NASDAQ:TSLA) is booming, and its expansion phase has just begun. The price of shares is set to skyrocket.
Tesla’s CEO, Elon Musk, tweeted in August that the electric car manufacturer has now produced over three million vehicles, up from just 3,000 a decade earlier. The rise in manufacturing is astounding.
Long-term investors ought to think about purchasing Tesla stock.
A leap of faith has always been required to make the Tesla bull case. In terms of the overall number of vehicles produced, the Austin, Texas-based corporation is a minor participant despite its breakneck production expansion. In spite of a components shortage, Toyota (TM) produced 10 million automobiles in 2021 alone.
Despite this, Tesla shares are still worth $904 billion, which is twice as much as the combined market capitalizations of Ford (F) ($63.6 billion), General Motors (GM) ($56 billion), Stellantis N.V. (STLA) ($48.5 billion), and Toyota ($259.6 billion).
Bulls gamble on future growth that will be exponential. It’s a wise wager.
Tesla manufactured the top two selling cars in the state during the first half of 2022, according to data released in August by the California New Car Dealers Association. It’s a significant development. The Model Y and Model 3 electric cars are more well-liked than long-time top sales powered by internal combustion engines like the Toyota Rav4, Camry, and Corolla.
In the market for luxury compact sport utility vehicles, the Tesla Model Y holds a 54.2% market share. In comparison to the runner-up, the 7,856 Mercedes GLC-Class, 42,320 cars were sold in the first half. The equivalent BMW, Audi, and Lexus, each of which sold fewer than 5,500 units, completed the top five.
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