This is a step-by-step stock review to answer the question, is Tesla (TSLA) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Tesla (TSLA) stock a good buy?
1. Tesla Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founding Vision: Tesla, Inc. was founded in 2003 by Martin Eberhard and Marc Tarpenning to accelerate the world’s move to sustainable energy.
- Leadership: Elon Musk joined early as chairman and later became CEO.
- Electric Vehicle Pioneer: Tesla gained attention with its first all-electric car, the Roadster.
- Model Lineup: Expanded to include the Model S, Model 3, Model X, and Model Y.
- Supercharger Network: Built a global network of Supercharger stations for long-distance travel.
- Autopilot Technology: Introduced advanced driver-assistance and autonomous driving features.
- Gigafactories: Built several Gigafactories worldwide to increase production of EV components and energy solutions.
- Energy Products: Expanded into solar panels, solar roofs, and energy storage systems.
- Innovative Technology: Known for innovations in battery technology, electric drivetrains, and software.
- Market Disruption: Influenced other car makers to invest in electric and autonomous vehicles.
- Global Impact: Operates worldwide, promoting sustainable transport and energy solutions.
- Environmental Mission: Committed to reducing carbon emissions and fighting climate change.
- Stock Market Success: Grew significantly in stock price, becoming one of the most valuable automakers.
Tesla leads in electric vehicles and sustainable energy, shaping the future of mobility and environmental sustainability.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: On Sale
- Score:72
- MOS: 80%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Tesla makes money:
- Electric Vehicles (EVs): Tesla sells electric cars, including the Model S, Model 3, Model X, and Model Y.
- Energy Products: They sell solar panels, solar roofs, and energy storage solutions like Powerwall and Powerpack.
- Autopilot and Full Self-Driving: They sell advanced driver-assistance systems and full self-driving software.
- Charging Solutions: They generate revenue from their Supercharger network and home charging solutions.
- Vehicle Services: They offer maintenance and repair services for Tesla vehicles.
- Emissions Credits: They sell regulatory credits to other automakers.
- Battery Technology: They develop and sell battery technology and energy storage products.
- Energy Trading: They engage in energy trading through their virtual power plant initiatives
- Maxwell Technologies
- SolarCity
- Grohmann Engineering
- DeepScale
- Perbix
- Riviera Tool LLC
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Tesla stacks up against other companies.
- Tesla (TSLA) – 72
- Mullen Automotive, Inc.(MULN) – 61
- Li Auto Inc.(LI) – 61
- Rivian Automotive, Inc.(RIVN) – 56
- GreenPower Motor Company Inc.(GP) – 45
- Cenntro Electric Group Limited(CENN) – 34
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Elon Musk led Tesla’s transformation into a leader in electric vehicles (EVs) and renewable energy solutions.
- He oversaw the development and launch of groundbreaking electric cars, including the Model S, Model 3, Model X, and Model Y, making EVs mainstream.
- Musk spearheaded the creation of the Gigafactories, revolutionizing battery production and significantly reducing costs.
- Under his leadership, Tesla introduced innovative technologies like Autopilot and Full Self-Driving (FSD), pushing the boundaries of autonomous driving.
- He championed the development of the Tesla Energy division, which produces solar panels and the Powerwall home battery, promoting sustainable energy solutions.
- Musk’s vision for a vertically integrated company led to advancements in manufacturing processes, enhancing efficiency and scalability.
- He played a key role in making Tesla the world’s most valuable automaker by market capitalization, reflecting investor confidence in the company’s future.
- Musk’s focus on innovation and sustainability has driven Tesla’s mission to accelerate the world’s transition to sustainable energy, influencing the broader automotive industry to embrace electric mobility.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Tesla (TSLA) is 78/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Tesla (TSLA) stock a good buy?
Some of the top questions investors can have is Tesla (TSLA) stock a good buy or should I buy Tesla (TSLA) stock?
Investing in Tesla is compelling. Tesla leads the electric vehicle (EV) market with innovative technology, strong brand loyalty, and ambitious growth plans. Its focus on sustainable energy, with products like solar panels and energy storage, expands its market reach. However, consider risks like market competition, production challenges, and regulatory changes. If you believe in the future of EVs and sustainable energy, Tesla’s pioneering role makes it a promising investment. Always research thoroughly before making investment decisions.
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To truly know if Tesla is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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