Tesla Motors

User Generated

CvaxrlErq

Business Finance

Description

Module 2 Discussions

Tesla Motors

Locked before Tuesday, January 2, 2018 12:00 AM PST.

Tesla Motors is the “it” stock right now in the automotive industry. Tesla was a pioneer in offering cars that run 100% on electricity rather than gasoline, and it has also diversified into solar energy, purchasing the company SolarCity. Its stock price has risen high enough in recent years that it has surpassed automobile giant General Motors in market valuation.

However, not all analysts believe Tesla is a good investment at its current price. It sells less than a 100,000 cars per year, compared with General Motors which sells around 10 million cars a year. Unlike General Motors, Tesla has yet to earn a profit.

Here are some articles both pro and con about whether you should invest in Tesla. Take a look at these articles and also try to find some more recent articles on Tesla’s stock:

https://www.forbes.com/sites/johnwasik/2017/04/14/5-reasons-why-tesla-is-bubble-priced/#d0626b26c631

https://www.smarteranalyst.com/2017/03/16/5-reasons-excited-tesla-inc-tsla-stock/

Based on what you’ve read, do you think Tesla is worth its high valuation, or is it simply priced too high because it is considered new and trendy? Would you personally invest in Tesla, or would you prefer to invest in one of the more established auto companies such as GM or Ford?

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Running Head: MODULE 2 DISCUSSIONS

1

Module 2 Discussions
Student’s Name
Course
Professor’s Name
Date

MODULE 2 DISCUSSIONS

2

Many have talked and even written about Tesla’s insane valuation. There is much
confusion on whether the company deserves its recent valuation in the industry where there are
significant and dominating companies such as Ford and General Motors. It is also noted that
despite the fact that Ford and Ge...


Anonymous
Just what I needed. Studypool is a lifesaver!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags