The Company Tesla Should Worry About in 2021
Shares of Tesla (NASDAQ: TSLA) have had such a good year in 2020 that the company is now worth over $400 billion, more than many major automakers combined. Different investors have different theses on why Tesla is so valuable, ranging from the company being a high-growth, high-margin auto stock to its future as an autonomous driving company with software-level margins. But the one theme is that there's a future for Tesla that's much bigger and more impactful than where it is today.
When a stock rises like Tesla's has, it puts a lot of pressure on the company to keep growing to meet investor expectations. But there are flaws in some of the growth theories, and there's one upstart in particular that Tesla should worry about in 2021: Cruise, the General Motors (NYSE: GM) majority-owned autonomous driving company.
Image source: Cruise.
Source Fool.com
