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5 Reasons Why Investors Buy Tesla stock 🚗

Tesla (TSLA) is an American electric vehicle and clean energy company, founded in 2003 by Elon Musk, the serial entrepreneur and founder of other businesses like SpaceX and more recently, owner and CEO of X (formerly Twitter). Tesla is best known for the production of affordable electric cars such as the Model S and Model 3. In 2021, Tesla also joined a small, elite group of companies worth over $1 trillion. If you're wondering why TSLA stock is favourite among investors, this guide may help with your decision-making. Here's 5 Reasons Why Investors Buy Tesla stock.

Innovation and Disruption

Tesla's relentless focus on innovation and disruption in the automotive industry is a significant draw for investors. The company's electric vehicles (EVs) have revolutionised the market, setting new standards for performance, range, and sustainability. With ongoing advancements in battery technology, autonomous driving capabilities, and renewable energy solutions, Tesla remains at the forefront of innovation, enticing investors seeking exposure to transformative technologies.

Growth Potential

Investors are attracted to Tesla's promising growth trajectory. Despite being a relatively young company compared to traditional automakers, Tesla has achieved remarkable growth, expanding its market share and production capacity rapidly. With ambitious plans for new vehicle models, expansion into new markets, and ventures into renewable energy and energy storage, Tesla's growth potential remains a compelling investment thesis for many investors.

Environmental and Social Impact

Tesla's commitment to sustainability and its role in combating climate change resonate with socially conscious investors. By promoting the adoption of EVs and renewable energy solutions, Tesla is viewed as a leader in driving positive environmental change. This alignment with environmental and social values appeals to investors seeking to make impactful investments while generating financial returns.

Brand Loyalty and Market Sentiment

Tesla enjoys strong brand loyalty and a passionate community of supporters, contributing to a favourable market sentiment surrounding the stock. The company's charismatic CEO, Elon Musk, often captures headlines with bold initiatives and ambitious goals, further fuelling Tesla investor enthusiasm. Tesla's almost cult-like following and strong brand recognition certainly help drive demand for TSLA stock.

Where Can I Invest in Tesla?

Tesla (TSLA) is publicly traded on the NASDAQ stock exchange in the United States. For investors wanting to buy and sell Tesla stock, you’ll need to use an investment platform that offers access to US-based stocks. All of the providers listed on our stocks and shares comparison page, offer investors with the ability to buy and sell Tesla shares. If you want to invest in Tesla via an ETF (Exchange Traded Fund), instead of buying the stock individually, you can find a comparison of some of the best platforms for ETF investing here.

What are the risks of investing in Tesla?

Tesla's stock comes with notable drawbacks, including its susceptibility to market volatility, particularly given the fluctuations in the electric vehicle sector. Concerns about production challenges, competition, and dependence on government incentives also contribute to the stock's unpredictable nature. Additionally, Tesla's valuation has raised questions about sustainability, leading to debates over its price-to-earnings ratios and potential for overvaluation.

Want to learn more?

Interested in investing but don’t know exactly where to start? Try the free Pluto app. Learn investing basics, and practise in a risk free environment with no real money. Find us on the Apple App Store.

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