FIN 501 Week 2 Discussion | Assignment Help | Trident University
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- 06 Feb 2021
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FIN 501 Week 2 Discussion | Assignment Help | Trident University
Tesla Motors is
the “it” stock right now in the automotive industry. Tesla was a pioneer in
offering cars that run 100% on electricity rather than gasoline, and it has
also diversified into solar energy, purchasing the company SolarCity. Its stock
price has risen high enough in recent years that it has surpassed automobile
giant General Motors in market valuation.
However, not all
analysts believe Tesla is a good investment at its current price. It sells less
than a 100,000 cars per year, compared with General Motors which sells around
10 million cars a year. Unlike General Motors, Tesla has yet to earn a profit.
Here are some
articles both pro and con about whether you should invest in Tesla. Take a look
at these articles and also try to find some more recent articles on Tesla’s
stock:
https://www.forbes.com/sites/johnwasik/2017/04/14/5-reasons-why-tesla-is-bubble-priced/#d0626b26c631
https://www.smarteranalyst.com/2017/03/16/5-reasons-excited-tesla-inc-tsla-stock/
Based on what
you’ve read, do you think Tesla is worth its high valuation, or is it simply
priced too high because it is considered new and trendy? Would you personally
invest in Tesla, or would you prefer to invest in one of the more established
auto companies such as GM or Ford?