Tesla Inc has become one of the most controversial companies in the market today. Bullish investors claim that the biggest electric vehicle maker is poised for huge revenue and profit as people gradually look for ways to reduce their carbon footprint. Bearish investors, on the other hand, think that the firm is still burning capital and that their stocks is highly overvalued using any conventional valuation metric.
Well, both the bulls and the bears have valid points, but reasons to invest in Tesla’s stock overweigh the reasons not to.
1. Insanely Loyal Consumers
A recent survey by Consumer Reports stated that Tesla is the best among all automakers when it comes to owner satisfaction. Consumer Reports data shows that a staggering 91% of Tesla car owners say they would buy the same car if they had to do it all over again.
Also, according to Indexes, Tesla has a net promoter score of 96, making it first among auto brands. This number represents how often people would recommend a brand for others.
2. Low-Cost Marketing
The media covers every move that the company makes, and this provides the firm with free advertising. Also, the CEO, Elon Musk has a stunning fan base of 9.1 Million followers on Twitter, and all this makes it easy for the firm to get the word out regarding new products quickly. This usually leads to high demand for their new products and less expenditure on marketing.
3. Acess to SpaceX Engineers
SpaceX is another growing company founded and led by Elon Musk. Of course, the guy knows a few things regarding materials science, engineering, and manufacturing. He has also admitted employing a few techniques learned at SpaceX to his car business. Of course, having some SpaceX engineers at his disposal can indeed and has evidently contributed to the growth of the business.
The company also has a supercharger network and has an excellent reputation. All this makes it almost certain that the business is headed up even more.