It's a high time to buy another shares to portfolio. My challenge is to beat the NASDAQ so I need good shares which will beat the market. Last time I've bought Baidu. The next one is Testa Motors.
That's why I chose Tesla: Let's start to answer 10 questions about Tesla.
Tesla produces luxury electric cars. It's simple as it is.
2. Competitive Advantage
Tesla is the leader on the market. Their competitive advantages are technological advancement and marketing. They are for sure the most known manufacturer of electric cars.
3. Chief Executive Officer (CEO)
Elon Musk (since 2003). He is well known businessman. This person in my opinion is a great asset of Tesla company.
4. Revenue Growth
Powerful growth. Grows every year. Last growth 26.5% y/y. Much more before.
5. Net Income
Loses every year. Tesla is far from profits.
6. Profit Margin
Below zero and decreasing.
7. Debt-to-Equity Ratio
0.58 is quite much. They don't have much space for investment.
8. Price-to-Earnings Ratio (P/E)
This company grows really fast. Clients want to buy more cars than Tesla is able to produce. They have to spend a lot of money for technology.
Bad PR, victim of own success, competitors, suppliers' delays
Answers above tell that I shouldn't buy Tesla shares. This company doesn't earn money. The more cars they sell the more they lose. But there is something more than financial fundaments.
Tesla is on the wave. Media really like this company and talk a lot about them (free marketing and Pr0. Clients want to buy more cars that they are able to provide. They don't need to care about the price so much. That's why I bought these shares.
Tesla is another company I invested in. Do you think it was a good idea? Would Tesla beat the NASDAQ market? I'm looking forward to your comments below. Thank you.