Tesla (TSLA) has been a hot topic lately, with the company’s CEO Elon Musk announcing that he will be stepping down as Twitter CEO in the coming months. Interestingly, TSLA shareholders appeared to rejoice at the news, as Tesla stock jumped.
Despite some concerns from longtime Tesla stock bulls about Musk’s focus on Twitter, along with negative attention, weighing down Tesla stock, the company is still poised for success.
Tesla and Musk are betting big on the Cybertruck and autonomous vehicle technology, along with a possible tailwind from the Inflation Reduction Act (IRA). The IRA, signed into law by President Joe Biden, is projected to boost Tesla, with Morgan Stanley (MS) analyst Adam Jonas writing that it is so “advantageous to Tesla in terms of absolute dollars” that it “functions as an insurance policy that investors are currently overlooking.”
Almost single-handedly, Musk has turned the auto industry on its head, essentially forcing it to get aboard the electric-vehicle train. This is why Tesla has been a monster stock over much of its history, especially during its stratospheric run from mid-2019 to late 2021.
While Tesla reported a big first-quarter earnings decline, with revenue missing views, the company is still performing well. The EV company’s total gross profit came in at $4.5 billion, with Tesla’s profit gross margin at 19.3%.
Tesla has also been adjusting its global price cut strategy to increase demand, which is good news for the company’s bottom line. The company has slashed prices worldwide multiple times in 2023, starting in January and continuing into April, except for in China where Tesla cut prices significantly in late October before the reductions in early January.
Furthermore, Musk has long touted the potential of autonomous vehicles and the Cybertruck, which is slated to arrive in the third quarter, to drive Tesla’s growth. With these exciting developments on the horizon, along with the IRA providing a boost, now could be a great time to invest in Tesla stock.
In conclusion, while there may be some concerns about Elon Musk stepping down as Twitter CEO, Tesla is still a strong company with plenty of positive trends in the economy to take advantage of. From the IRA to the Cybertruck and autonomous vehicles, Tesla is well-positioned for growth and success in the coming years.
Sponsored by $MLRT – MetAlert, Inc
