With a market cap hovering around $800 billion, investors are pushing (NASDAQ: TSLA) toward a return to the $1 trillion club. The innovative automotive manufacturer certainly has the prerequisite characteristics of one, including a secular tailwind, a culture of disruption and innovation, and a truly huge market opportunity. But share prices have already climbed so much in a relatively short time. Investors concerned about paying too much have a lot to think through before making a move.
So, is Tesla stock a buy right now? Let's take a closer look at the market leader in electric vehicles (EVs).
Tesla has a truly monstrous lead in the EV industry in the U.S., which has helped build up the company's economic moat. Key to Tesla's success is its strong brand, which it helped build by first focusing on the high end of the market. Its cars are considered high-tech, and the ability to service them for some issues with just a software update offered an improved customer experience. Despite little to no traditional marketing efforts, Tesla has a standing as a luxury item.
Source Fool.com