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    3 Reasons to Buy Tesla Stock Like There’s No Tomorrow

    Vaseline Posted on

    Tesla (NASDAQ: TSLA) Shares opened higher on Thursday after a better-than-expected quarterly report. Critics will point out that an already overvalued stock is now even more richly priced. People upset by Elon Musk’s political antics will argue that profits may not last long for a divisive and volatile CEO.

    However, Tesla has been trading higher – much higher – than it is now for quite some time. There was also a lot of meat in Wednesday afternoon’s financial update to encourage a long-term bullish mindset for the country that made electric cars viable and ambitious. Let’s take a look at some reasons why now could be a good time to buy Tesla stock like there’s no tomorrow.

    The 8% increase in revenue to $25.2 billion for the three months ending in September isn’t necessarily impressive. Investors already knew that vehicle deliveries for the quarter were pre-announced as up 6% year over year. Average sales prices are going down, but given Tesla’s ecosystem of subscriptions, accessories, and Supercharger outposts, it’s easy to see why revenue is about more than just initial sales.

    Angry birds will point out that Tesla is experiencing unsustainable momentum by selling regulatory credits to automakers. There’s also the automaker’s booming results in power generation and storage. It still doesn’t take away from his stellar performance on the bottom line.

    Net income rose 17% to $2.2 billion this quarter, more than doubling revenue gains. Tesla has slashed prices on everything from its cars to subscriptions for its autonomous driving platform. The operating margin was still 10.8%, well above the 7.6% of a year earlier. Now it’s a matter of finding a way to shine.

    This is Tesla’s strongest sales growth in a year, and the first time in more than a year that margins have expanded and profits have exceeded sales. It was a refreshingly positive report.

    Someone at a Tesla Supercharger station with a hand on the charger.
    Image source: Getty Images.

    There’s no shortage of video clips online showing Tesla’s Full-Self Driving platform at its worst. It was launched in beta a few years ago. There will be bugs. However, the subscription platform that automates the driving experience keeps getting better with every update.

    Tesla points out that the ratio between kilometers and interventions – or how often someone has to take over for something the car misses – is getting better. A crash on autopilot is now statistically less likely than when a human is behind the wheel. It may never be perfect, but it’s a win if it’s safer than the owner behind the wheel.

    Vaseline
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