Is It Too Late to Buy Tesla Stock?

Tesla stock is up 120% YTD and many investors are wondering if it’s too late to Buy TSLA shares.

Here are 7 reasons why I don’t believe it’s too late to buy Tesla stock.

  • High Revenue Growth: Tesla grew its revenue to $81 billion in 2022 (Up 51% YoY) and continues to grow despite supply chain issues and problems in China.
  • Innovative Product Pipeline: Tesla has plans to start producing the Cybertruck in 2023 plus has plans to scale the Tesla Semi production. Other future products include Tesla bot and potentially an eVTOL aircraft as well. Innovation is what drives Tesla and I don’t see any signs of that slowing down soon.
  • Industry Leading Operating Margins: Tesla’s 17% operating margin leads the entire EV industry by a long shot and gives the company a lot of wiggle room to lower prices in order to increase demand for its products.
  • Growing Free Cash Flow: Tesla has grown its FCF tremendously over the last 5 years. Free cash flow reached $7.5 billion in 2022 and many investors believe FCF is a better metric for valuating a stock than net income.
  • Strong Cash on Balance Sheet: Tesla holds over $22 billion in cash with just $5 billion in long term debt. Tesla CFO Zach Kirkhorn has done a good job managing the company’s balance sheet and keeping it basically debt free.
  • Bitcoin Holdings: Tesla holds over 10k Bitcoin on its balance sheet and I remain extremely bullish on cryptocurrency in the future. Tesla could see a 10 to 20x gain on its BTC holdings during the next crypto bull run in 2024.
  • Low Market Cap Compared to Amazon, Apple, and Alphabet: Tesla’s market cap is much lower than Apple, Amazon, or Alphabet even though the company can be considered on the same level.

It’s not too late to buy Tesla stock if you plan to hold TSLA for the next 2 to 5 years. Investment guru Cathie Wood believes Tesla stock could hit $1,600 in the next 5 years and I think she’s on the right path.

Tesla has a CAGR of over 50% since 2013 and looks like one of the safest stocks for growth investors to hold right now.

It’s also why you could possibly retire on Tesla stock by 2030 if you buy a large amount of shares and hold your investment. My research estimates that holding 200 TSLA shares could make you a millionaire by 2030.

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