My Honest Opinion of Tesla Stock

Investing in (NASDAQ: TSLA) these days requires a reset of investor perspectives on what the company is and what kind of industry it operates in. Keeping that premise in mind, here's one view of Tesla, its industry, and the investment proposition for the stock.

Traditionally, investors viewed the auto industry as a highly competitive, mature, low-growth, and relatively low-margin sector, and accorded stocks in the industry the kind of low valuations that such stocks deserve. After all, having to develop new models every five to seven years and refresh them every few years is costly, as consumer preferences change and competitors introduce new models. Additionally, automakers strive to generate revenue from after-sales services, encompassing financing, parts, and maintenance.

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Source Fool.com