Tesla Costs More Than $350 a Share. Here's Why I'd Still Buy One.
A big stock price. A bigger earnings report. Opportunity could be knocking.
Tesla's shares are trading above $350, despite the company's recent financial struggles. The stock price has surged as gas prices rise, making electric vehicles more appealing to U.S. drivers. Tesla's new products, including the high-end Roadster and Optimus humanoid robots, are driving analysts to predict a nearly doubling of annual revenue over the next three years.
However, the company's profitability has been cut in half in the previous quarter, and analysts expect a smaller decline in the upcoming third-quarter results. Despite the 21% drop in shares this year, the fundamentals remain strong, with flat sales being a positive sign given last year's spike. Investors should approach this opportunity cautiously, as volatility has always been part of Tesla's story.
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