After doubting Tesla and much of Elon Musk’s vision of what the company could accomplish, a few years ago I finally became a believer in the company’s business case, its engineering and technology leadership, and the long-term growth opportunities of its stock. As a long-term investor in companies with a credible chance to drive and profit from a TaaS future, I purchased my first Tesla shares in November 2018 at a split-adjusted price of $68.16 per share. In a sign that my belief in Tesla’s future is only growing, I added another allocation of shares in early January 2020 at a split-adjusted price of $84.63 per share. As I write this newsletter at the market’s close on September 30, my compound annual growth rate on Tesla stock is 192%, with a total return of 493%.
Frankly, I believed many of the “experts” that predicted Tesla’s demise over the years. But I eventually determined that Tesla was approaching the business of automotive, electric vehicle and battery engineering, vertical integration, EV charging infrastructure, and autonomous vehicle technology development in significantly disruptive ways. More recently, I’ve even come to the conclusion that Elon Musk also wants to disrupt manufacturing and actually make this a primary core competence for Tesla that drives down costs dramatically.
Unlike some, I never predict the short-term direction of Tesla stock based on the latest vehicle shipment data or reaction to events like Battery Day. This reminds me of Warren Buffet saying that valuing Apple based on the latest iPhone shipments is a bad idea. I also do not believe that if Tesla wins, all others must lose. The business of EVs and TaaS will not be a zero-sum-game. There will be other major players in a TaaS world that could eventually be an $8 trillion industry. Tesla will be one of those major players, if not the leader, in this industry future. And that supposition alone is a major reason to own Tesla stock now.
Don’t miss any of my future newsletters where I explain in more detail how Tesla is winning today and how the company’s advantages will be very difficult to surpass. Importantly, I also will introduce other companies that could profit tremendously in a TaaS future based on their leadership, R&D, and capital investments being made today. I already own the stocks of some of these companies today. Don’t miss out on learning about these opportunities for long-term stock appreciation.
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Disclaimer
TaaSMaster, LLC is not a registered investment advisor or broker/dealer. All investment opinions expressed by TaaSMaster, LLC are from personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors may occur.