Here's What Tesla Bears Miss About Its Future
It is said that the proof of the pudding is in the eating. Tesla (NASDAQ: TSLA) has proved that it can deliver consistent performance, quarter after quarter. Less than a decade ago, several investors outright dismissed Tesla as an unviable business. But this group has largely vanished, and there is hardly any disagreement now on the viability of Tesla's business.
The discussion has now shifted to the massive valuation of Tesla's stock. Not that this argument is entirely unreasonable, but there are aspects of the stock that the Tesla bears might be missing. Let's discuss some key factors that investors should consider while deciding whether to invest in the stock or not.
In the first quarter of this year, Tesla's revenue grew by 81% over the same quarter last year. The company's net profit margin rose to 17.7%. For starters, that is more than three times the margins that auto companies typically generate.
Source Fool.com