- Skeptics of Tesla have turned bullish on the electric car manufacturer.
- Tesla has matured in 2019, operating more like a traditional automotive company.
- It’s already too far ahead of the pack in the electric car market, no other company comes close.
The market cap of Tesla (NASDAQ:TSLA) has surpassed the $60 billion mark, supported by the rising popularity of the newly released Cybertruck. The firm’s turnaround has even led skeptics to turn bullish.
Up until October, Tesla was criticized for being a little bit too different from traditional automakers in the way the company handles conferences, earnings and other crucial aspects of the business.
As the company evolved, and so did its market cap, high profile investors like Jim Cramer and Pierre Feragu started to believe that Tesla is now far ahead of the automotive industry. Three reasons support that claim.
1. Highly innovative
Tesla has stood out from its competitors since its inception. The public’s reception of its newest products like the Cybertruck have changed the mind of investors who previously thought such products would only appeal to a niche market.
Jim Cramer, host of CNBC’s Mad Money, said that he was blown away by the demand for the Cybertruck. With an improving balance sheet, beloved CEO in Elon Musk, and an active following, Cramer said that Tesla has all signs of a great company:
Even better, on that last conference call, he revealed his true rigor without the sardonic quips. Musk, it turns out, is a great CEO when he can get out of his own way, and that seems to be what he’s doing. Cult product? Check. Sound balance sheet? Check. Charismatic Leader? Check. If you’re going to invest in a battleground stock, Tesla’s got all the ingredients of a winner.
So far, 250,000 orders for the Cybertruck have been made. That’s equivalent to $25 million in revenue once the cars ship.
Read more: CCN