What sets the electric vehicle industry apart?
The electric car industry differs from the traditional automotive industry because it is very young.
Until recently, very few companies produced any type of electric vehicle, but now every major automaker in the world is developing or producing an electric vehicle.
Because the great interest in electric vehicles is so recent, the only industry leader is Tesla.
Emerging EV manufacturers may well compete with traditional automakers for EV market share, making it difficult to tell which companies will ultimately dominate the EV market.
This unpredictability makes investing in the electric car industry riskier than adding portfolio exposure to the automotive industry as a whole.
Electric cars, commonly called EVs or electric vehicles, are cars with engines that run on electricity instead of gas.
Electric car stocks include companies that are primarily focused on producing electric vehicles.
Companies that manufacture components used in electric cars, such as batteries or autonomous vehicle systems, can also be considered part of the electric vehicle industry.
Although all major car companies, including Ford and Volkswagen, are developing and/or producing at least one electric vehicle model, they are generally not considered electric car companies because their main products are not electric.
The best electric car company stocks are generally companies that already make and sell electric cars, not companies that only plan to do so.
Tesla: The Industry Leader
Any list of electric car stocks should include the parent of all, Tesla.
Tesla started building its electric cars from scratch, unlike the usual manufacturers who had to develop them separately.
Tesla hired the best technicians in the world, bought an abandoned car factory and turned it into a luxury factory, with high-tech robotic cars and quality controls that no other factory has. (There’s a National Geographic video that shows it all.)
Tesla designed a factory with the highest quality standards in the world and with the best engineers and technicians specializing in every branch of vehicle manufacturing. So it is very rare to find a Tesla with a defect, as it happens in the factories of General Motors or Stellantis.
Elon Musk’s electric car company had a banner year in 2021. Tesla delivered about 936,000 vehicles. Most of the vehicles were Model 3 sedans and Model Y crossover SUVs.
Management has been working through inflation, supply chain and factory growth issues in 2022, with production continuing to decline in the first and second quarters of the year.
However, in the third quarter of 2022, production increased dramatically, reaching an annual rate of over 1.4 million vehicles.
Tesla continues with an aggressive production plan, looking to increase production at existing factories in Fremont, CA and Shanghai.
However, the biggest increase in production is likely to come from two newer gigafactories, or giant factories, in Berlin and Austin, TX, which are still in the growth phase.
In addition to skyrocketing deliveries, Tesla is now making a profit without relying on selling regulatory credits.
Net income topped $5.5 billion in 2021, up from $721 million in 2020; less than a third of its earnings came from regulatory loans.
The company’s strong results have continued into 2022, with the company posting record revenue, operating profit and free cash flow in the third quarter of the year.
Despite what looks like very strong operating performance, Tesla stock has been trending lower for most of 2022.
That may have more to do with an epic rise in its share price, which peaked in late 2021 at more than $414 per share.
Shares have halved in value since then, although it remains the world’s largest carmaker by market capitalization. And by a surprisingly wide margin.
Although Tesla’s valuation metrics, such as price-earnings and price-to-sales ratios, have fallen sharply, more conservative investors likely still have some questions about its still-high valuation relative to manufacturers. traditional vehicles.
The benefits of owning a Tesla
Some of the top benefits of owning a Tesla include saving money on gas, spending less time with the mechanic, exceptional road safety, and a stress-free driving experience.
It’s no secret: the future of cars is electric, and Tesla’s fleet of sleek, fast, and cost-effective cars is leading the charge.
Whether you’re passionate about driving an eco-friendly vehicle or just want to breathe easy in bioweapon defense mode, a Tesla might be right for you.
Compared to other electric vehicles, Teslas have superior range and charging capabilities. The base Model 3 has an EPA-estimated range of 263 miles. At the other end of the price spectrum, the Model S has a range of up to 400 miles or more.
Tesla also has a coast-to-coast Supercharger network. These stations provide up to 250 kW of charging power and can recharge the Tesla battery in just 20 minutes.
Teslas have high safety ratings and have earned five stars in NHTSA, Australian ANCAP and European NCAP tests. In fact, NHTSA tests found that passengers are unlikely to be injured in a Tesla crash.
Model S, Model 3, Model X or Model Y, any Tesla can be purchased in a performance model.
Tesla’s signature suspension and road handling are available on all vehicles, but the performance version offers special capabilities for driving enthusiasts.
Performance Teslas are insanely quick, with zero to sixty times crushing all ICE sedans and many exotic sports cars.
Why do people like Tesla? (said by an owner)
Advantages:
Outstanding acceleration and handling.
Once stepped on, it’s hooked! Total silence. There are no sudden changes. Just a mild powerful… wonder… and you’re going 75 mph without knowing it.
There are no gas stations.
You mean I just charge this thing at home like a cell phone? Fresh! This is a fact. Add in the fact that I’m installing solar panels on my roof and this car is pretty much off the grid.
No oil change.
There is no power steering/coolant/transmission fluid to change. Maintenance is minimal.
I can preset the indoor temperature before entering with a tap of my phone.
Very large screen in the center console. This is no longer just a car. It’s a great device! And I’m a gadget geek.
The call function is useful in tight parking situations.
FRunk is more storage for my convenience. The trunk is very wide.
Updates over the air. I love the fact that my Tesla gets more and more great features for free as time goes on.
My Model S has 2 devices, 6 cameras/sensors and is ready for various types of autonomous driving when the software is ready.
Overall, I like this car. Needless to say, I will never buy a gas car again. The future is here people. (Perseus Esparza, owner).
Drawbacks of Owning a Tesla (Told by an Owner)
While there may not be oil changes, Teslas are not immune to problems. If something goes wrong, like an electronic latch or a touch screen, you could end up paying more than $1,000 for the repair.
Now that more Teslas are on the road with more miles, we’ve learned that control arms can be a common problem with Tesla cars. We have to care.
Later, you may also need to replace the battery, which can cost up to $16,000. However, Tesla’s batteries come with an eight-year/150,000-mile warranty. So there is not much to worry about.
Some insurance companies may even classify Teslas as luxury vehicles, further increasing insurance premiums.
However, owners with a good driving record can get Tesla insurance coverage, which can offer lower premiums than other insurance companies.
Conclusion To buy or not to buy a Tesla?
Minor drawbacks aside, Teslas generally have a lot to offer with their incredible range, technology and fast charging. Their batteries last longer, a top secret detail from the manufacturer.
They can suit any buyer, from office commuters to road trippers to performance enthusiasts. Tesla is undoubtedly the king of electric vehicles and will remain so for now.
Tesla does not offer cars to the press to test, has no marketing or advertising department, deals directly with owners in various ways.
Many journalists or so-called car journalists (we call them car paratroopers), have their eyes on Tesla and do not stop attacking the manufacturer, with stupid comments that allude to problems that are invented or do not exist, or production details that are irrelevant.
We think Tesla is way ahead of any competitor at this time, and even though its sales may have plateaued at one point, without the rapid growth it has had, that’s because there are far more competitors than years ago.
While Tesla is able to fill all orders, the automaker will launch the long-awaited semi-truck, the Roadster, and possibly a midsize SUV, which could shake up the market to compete with Jeeps and Broncos.
And who knows if it launches a competitor for Hummer, which already has serious electrical problems before it reaches its customers.
Tesla has a bright future ahead of it and its reliable models back it up.
