There are few companies that have the ability to surprise the way Tesla Inc (NASDAQ:TSLA) can.
I mean, how many companies would unveil a robot on stage—only it wasn’t a robot at all, just a guy in a robot suit—with only a promise that there would be a real robot someday?
That’s pure Tesla Inc, and part of what makes TSLA stock so enticing for investors.
After all, Tesla stock has shot up so high in large part due to its endless ambition and eye toward the future. That started as a focus on electric vehicles (EVs), which quickly made TSLA stock one of the top EV stocks around.
Then, Elon Musk, CEO/celebrity personality/Saturday Night Live host, began dabbling in space flight, which many people (myself included) believe will one day link up with Tesla stock in one way or another.
And now, at last, Tesla Inc has revealed its darn robot, called “Tesla Bot.” (Source: “Tesla Adds More Jobs to Build its Humanoid Robot, Hints at Production in Texas,“ electrek, August 31, 2021.)
Of course, even TSLA stock’s biggest supporters (of which I have, at certain times, been among their number) know that promises are not always congruent with reality.
So what does Tesla Bot mean for the future of Tesla stock?
Chart courtesy of StockCharts.com
Frankly, the news is very positive. It shows that Tesla Inc hasn’t lost its ambition—or its panache for extravagant promises.
And while the company’s promises can sometimes get TSLA stock into trouble, more often than not, that ambition is precisely what investors like so much about the company.
Tesla Inc is, if nothing else, forward-looking. The company wants to be the go-to maker of EVs at the exact time we transition away from the traditional combustion engine.
Tesla also wants to power homes with solar panels and electric batteries, have artificial intelligence (AI) pilot its cars, and—you get the picture.
This is a company that has made its market by aiming for the stars. Has it reached the stars yet?
Well, no. Even with the impressive sales of Tesla automobiles, the company’s market cap is still very much tied to the potential that Tesla has to be in the future what General Electric Company (NYSE:GE) was in the past: a company that has its hand in virtually everything.
And this is more than just show. Tesla Inc has already begun hiring more workers to actually build Tesla Bots.
This moonshot is ambitious and perhaps doomed from the start (if Tesla thought getting AI cars through regulatory loopholes was difficult, imagine getting approval for humanoid robots that can take people’s jobs), but that really doesn’t matter in the end.
There’s so much momentum behind Tesla stock that these kinds of crazy plans are just the icing on the cake.
If Tesla Bot works out? Great! TSLA stock prices soar. If it doesn’t work out? Well, investors are used to Musk being half a showman, anyways. Tesla still has powerful technology and cars that can drive the company forward for years to come.
And that’s important to remember: Tesla Inc is a car company (at least for now).
Solar batteries, solar panel roofs, AI driving software—that’s all great, but in the present, the company’s bread and butter is making EVs that people like.
And Tesla Inc has been immensely successful at that. Tesla is a brand that’s now on par with Apple Inc‘s (NASDAQ:AAPL) “iPhone.” People like the car not just for its tactile and material benefits, but also for the status and prestige that comes along with owning one.
Conspicuous consumption can be an excellent driver of share-price momentum, and Tesla Inc has established itself as a brand without equal in the EV market (at least for now—more competitors are bound to enter the space as we transition to electric-only cars).
What’s more, the company is continuing to expand its production capacity and footprint around the world, ensuring that it will be able to continue growing its revenue for years to come.
That puts Tesla stock investors in a very strong position.
On the one hand, there’s Tesla’s automobile fleet and its increased popularity around the globe. With each passing quarter, Tesla Inc is getting better at producing and selling its vehicles, which will drive revenue, which will help foster share-price growth.
On the other hand, the company has all sorts of moonshot ideas (like Tesla Bot) that, if literally any of them reach even a fraction of their vaunted potential, we’re looking at one of the most valuable companies in the world.
So, you have a good combination of a company that has real, solid numbers and products to offer consumers today, while also having an eye on the future with multiple projects that could lead to huge share-price increases for decades.
That’s a very enviable position to be in, and it’s part of the reason that TSLA stock remains one of the top EV stocks around.
Tesla Inc is a bit of a crazy company, but that’s what people like about it.
Its promises are always grand and lofty and sometimes unachievable, but at the end of the day, few companies are as daring as Tesla.
And that’s precisely why Tesla stock has been rewarded again and again, despite the legion of haters out there. The company has been able to deliver on at least some of its promises. And if Tesla succeeds with just one more of its paradigm-shifting projects, that could propel TSLA stock into the stratosphere.
And if it doesn’t? Tesla Inc still has its rising car sales to help push TSLA stock upward.
In other words, Tesla stock offers a solid and realistic path toward gains while also promising huge potential for the future—a very enticing combination for investors.