The TSLA Stock Seems to be The Only Electric Car that You Should Buy

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If one were to see the developments made by the TSLA stock in the context of electric cars, one would think that the entire industry was in a bubble. Tesla soon rocketed to 600% this year, which turned up the market cap of the country to around $540 billion. To put things in context yet again, this amount is the annual sales of the company multiplied by twenty, and around thirty-five times the book value. Needless to say, Tesla is extremely hot and profitable right now. But, this growth is due to the increasing sale of regulatory credits. The P/E ratio of the TSLA stock is so extreme, that there is no point mentioning it. 

Interestingly, the success that Tesla enjoys doesn’t just have to do with cars. The TSLA stock has a cult status and their fans are extremely loyal to the brand. It can be said that the company is much bigger than just an automobile brand- it is valued more along the lines of Google, rather than Ford. 

This Year is Proving to be a Boon for the TSLA Stock

2020 seems to be going quite differently for makers of electric cars along with the TSLA stock, as all have gone through major developments. NIO, an electric car maker from China has a net worth of $70 billion- despite it just selling 12,000 of its units in Q3. Nikola, surprisingly, is also worth close to $10 billion even though they have had fraud accusations leveled against them. Even the electric truck company Workhorse has had its shares increased by over 800% the current year- and currently have a market cap of $3 billion. This should come as a major surprise- for the company barely produced any new cars, and had an overall sales of just 1,800 vehicles.