Tesla’s (TSLA) Future Sees Sparks like Electricity

Tesla’s All Electric Future

Tesla (NASDAQ: TSLA) has announced plans to also release Full-Self Driving (FSD) over the next few years as regulatory approval begins to progress. This technology would not only drastically reduce traffic by accelerating all the cars at the same time, but also make it extremely affordable for the average person to travel between destinations.

FSD solves a big problem, and it’s public transport. In the United States alone the market for public transport is worth $66 billion in 2021. TSLA is looking to take a big piece of that.

For TSLA to create an entire sustainable energy ecosystem, they also manufacture many sets of energy solutions, power walls, power packs and solar roofs, enabling homeowners, businesses, and utilities to manage renewable energy generation, storage, and consumption. This combined creates an ecosystem where anyone can oversee their electric utilities in real time through their phone or computer. Believe it or not, this is a huge step to making a sustainable future for all of humanity.

 

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As expressed, all of these services and products Tesla offers makes them worth a lot more than the average automaker, and it’s what makes them have such a high valuation.

To understand TSLA completely you need to look at them through a completely different lens. Once you see it, you can’t un-see the opportunity.

Tesla the electric vehicle, solar, and battery manufacturer had a crazy 2020 when investors started to realize the potential of Tesla, and where they are going. Due to this sudden realization we have seen an unprecedented amount of competitors bring forth their own electric vehicles with plans to try to compete.

The Competition

More recently, Volkwagen AG outlined their battery and charging technology plans through 2030 at a “Power Day” event which looks to be a version of Tesla’s “Battery Day”. During the virtual event, Volkswagen expressed plans to create electric vehicles that are affordable and efficient by reducing the complexity of EV batteries.

Something to note even with the scary thought of other auto manufacturers dethroning TSLA, is that TSLA is years ahead of everyone. Tesla on Battery Day in 2020 announced over the next few years they could cut their cost per kilowatt hour by nearly 56% on their batteries.

Tesla makes facilities designed to significantly reduce battery cell costs. By bringing cell production in-house, TSLA manufactures batteries at the volumes required to meet production goals effectively and efficiently.

What’s to say they haven’t already started improving their batteries ahead of Volkswagen?

Fear, Uncertainty, and Doubt

Fear, Uncertainty, and Doubt (FUD) is a common occurrence when listening to others talk about Tesla as soon as any “competition” releases a competing electric vehicle. The important thing to note is a lot of the FUD comes from people who don’t have a clue what crazy technologies Tesla has behind closed doors, and how many years ahead they are.

Tesla is truly a revolutionary company, what are your thoughts on their future?

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Andre Mitchell
Andre Has been trading financial markets for 5+ years. Has consistently grown small account sizes to medium sizes. Andre is a long term income investor that primarily operates in the stock options market and loves sharing his insight and experience with people who love investing and growing their financial wealth.
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