3 Reasons To Buy Tesla Stock In 2022

Best 3 Reasons To Buy Tesla Stock In 2022 - Daily Finance Facts

If you want to Buy Tesla Stock In 2022, then this article is for you to understand Why you need to buy tesla stock. In this article, there are 3 main reasons to buy tesla stock in 2022.

That’s roughly $1 billion more than Netflix Inc. (NFLX), the dominating streaming video behemoth, raked in over the same time period. Alphabet also used the occasion to announce a 20-for-1 stock split in conjunction with its spectacular performance. The split, which will take effect in July, would make Alphabet shares, which closed at $2,638.13 on March 4, more cheap to retail investors on a per-share basis, thereby encouraging more people to acquire GOOGL stock.

With Russia, the world’s largest producer of crude oil (the key ingredient in gasoline), at war, gas prices are likely to remain high for far longer than originally predicted. Furthermore, it is almost inevitable that many nations will reduce their reliance on Russia for energy. If this occurs, gas prices would inevitably climb as other providers try to keep up with the unexpected increase in demand.

Tesla automobiles are, of course, expensive. Gas prices, on the other hand, pile up over time. For individuals who live in rural areas of the United States, where automobiles are nearly a necessity, gas prices can be even more of a burden. Without a drop in petrol costs, buyers may find Tesla automobiles to be more cost-effective in the long run.

Here are 3 reasons to buy Tesla stock in 2022;

1. The Elon Musk Factor

One of the main reasons to buy tesla stock is Elon Musk. In a market dominated by high-risk assets like cryptocurrencies, nonfungible tokens (NFTs), special purpose acquisition companies (SPACs), and other disruptive technological developments, investors are frequently ready to ignore fundamentals in favor of long-term potential. Elon Musk, the CEO of Tesla and SpaceX, is one of the world’s richest persons. And, for better or worse, his opinion has had a significant impact on the markets. His tweets on Bitcoin and Dogecoin have sparked a buying and trading frenzy. Tesla is also influenced by the legendary CEO.

Putting Elon Musk’s meme potential aside and focusing on his ingenuity, the market is anticipating Tesla’s new goods this year. Musk is anticipated to reveal additional vehicle types in 2022, including a semi-truck, a “supercar,” and a low-cost electric vehicle. On the company’s next earnings conference, he should also provide additional details regarding the long-awaited Tesla Cybertruck. Musk’s company’s stock should rise if he makes any favorable news.

Best 3 Reasons To Buy Tesla Stock In 2022 - Elon Musk

2. Production is accelerating thus sales will keep soaring

Stock splits have no effect on the company’s value or core operation. They can, nevertheless, be an indication of management’s confidence. In many situations, this correlates to stock gains. Since August 2020, when Tesla announced its latest stock split, the stock has risen about 300 percent.

However, this was mostly due to the business, not the stock split. In 2021, Tesla delivered about one million vehicles, nearly doubling the previous year’s total. However, with demand maintaining high and Tesla adding additional plants in Texas and Germany this year, it’s likely that by the end of 2022, Tesla could be manufacturing 2 million vehicles per year.

Customers are also eagerly anticipating that output. Given Tesla’s head start in electric vehicle production in the United States, it’s no wonder that its models accounted for four of the top five best-selling electric vehicles in 2020. In 2021, the company’s total revenue surpassed $50 billion, and it earned nearly $5.5 billion in net income.

TSLA’s growth prospects appear to be quite bright as well. Tesla is expected to build over 930,000 automobiles in 2021. Furthermore, it plans to sell 20 million electric vehicles per year by 2030, which is certainly feasible given Tesla’s current growth pace. It’s also worth noting that Tesla isn’t only an electric vehicle manufacturer. It makes a variety of revenue-generating energy products, such as solar roofing and storage or charging systems.

They will surely benefit from the world’s shift to renewable energy sources. In conclusion, I feel that TSLA will be there for a long time. Because of the market’s uncertainty, To buy tesla stock is still a hazardous investment in the short term. However, I continue to believe that Tesla will rebound in the event of a market meltdown. If a recession does not come in the near future, rising gas costs and surging sales would certainly cause the stock to reverse course.

3. Tesla Is the Major EV Player

Tesla is now the leading manufacturer of electric automobiles across the world. The corporation has a 15% market share, with Volkswagen and General Motors (GM) following closely after – Get General Motors Company Report. The electric vehicle industry was valued at $287 billion in 2021. According to third-party research agencies, this will increase to $1.3 trillion by 2028, with a CAGR of 24%. Due to its cutting-edge technology and high consumer loyalty, Tesla is the most powerful player in this business.

As a result, it will inevitably benefit from the expansion of this industry. Keep in mind, however, that strong competition from other major EV players such as Lucid (LCID) – Get Lucid Group Inc. Report and Rivian (RIVN) – Get Rivian Automotive Inc. Report, as well as traditional automakers such as Ford (F) – Get Ford Motor Company Report, could pose a threat to Tesla’s rapid expansion.

Best 3 Reasons To Buy Tesla Stock In 2022 - Electric car

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