6 Reasons Why Tesla’s Stock Isn’t Overvalued (& is protected by their infrastructure)


Just like a SpaceX rocket blasting into space, Tesla stock is continuing on its vertical trajectory into the stratosphere. When compared with other automakers, Tesla’s stock valuation may seem insane. However, Tesla shouldn’t be compared to other car manufacturers. Here’s why.

Tesla’s Community

A combination of Tesla owners, fans, and shareholders from all around the globe, the burgeoning Tesla community not only supports the company mission as a whole, but they also believe in Elon Musk’s vision to transition our world to rely on more sustainable energy. Tesla followers have attached deep emotional significance to the EV company as a whole. That’s because they’re not just seeing a mode of transportation, they’re excited about being a part of the future.

Tesla creates a variety of electric cars, but they also build rockets that go to space, and provide Powerpacks that help power homes and businesses. So, the most common reason why Tesla has created such an awesome community of followers is that they are focused on bettering our world in exciting new ways. And people not only want to invest in a company that cares about their needs, but they also want to become a part of something that’s much bigger than themselves because it makes them feel like they belong. Which is exactly what the Tesla community is all about.

Tesla’s World Class Infrastructure

While Tesla’s future as a company is based on producing the very best in electric vehicles, in order to support the world’s transition from fossil fuels to cleaner energy, they’re also installing a network of infrastructure to support them. Their infrastructure already spans the globe, which includes dealer stores, servicing locations, and mobile service vehicles that work together as a team for those who buy their cars from the company. 

Tesla’s consistently expanding infrastructure of supercharger stations is especially viewed by most as a huge competitive advantage, as it reduces range anxiety of their customers and improves their experience. In fact, Tesla’s businesses as it currently stands will not be able to function properly without their world-class infrastructure. And the continued growth of Tesla’s assets provides investors and analysts alike with a reliable indication of exactly how healthy Tesla’s business operations are.

Tesla’s Superior Battery Technology

Tesla has been able to maintain their hold on the market for as long as they have with the biggest tool at their disposal, which is the range of their batteries. Tesla has consistently been leading the EV race over the last decade, not only because their high-powered battery technology allows them to travel much farther on a single charge, but also because they’ve been willing to take more risks. In fact, even many Tesla sceptics think that their batteries are simply superior to their competitors.

Tesla utilises software which helps them ensure their batteries are as efficient as possible, which is why they also design their battery-powered electric vehicles from the ground up. But people aren’t just buying Teslas for their battery range. They also like other high tech features like Autopilot, which can automatically steer the car and execute lane changes while driving on the highway.

Tesla’s Large Scale Data Collection (Modern Gold Mining)

Connectivity and data collection has long been a flagship feature of Tesla vehicles. In fact, even before they’d made a single car, Tesla had already created a massive database of consumers who were interested in purchasing the latest in vehicle technology. In some ways, it appears that the sheer volume of data is a greater asset for the company than the cars themselves. That’s why Tesla is often referred to as a data and software company, and not an auto manufacturer. 

Despite the collection of data being opt-in and voluntary for their customers, most Tesla owners are more than willing to allow access by the automaker as it’s used primarily for vehicle improvements while feeding its neural networks. Therefore, Tesla records data generated by the vast majority of their vehicles, including all aspects of use by their customers. This data collection not only enables several useful customer features, but it is also used to improve features like Autopilot by detecting when drivers intervene.

Tesla’s Dealership-Less Model Is The Future

Tesla is consistently building factories in more and more countries around the world in order to massively increase their productivity as a company while also helping to transform the use of energy. Tesla is also rapidly increasing their number of retail sales stores and service station outlets in highly visible and premium locations in major metropolitan markets because opening these new outlets in different geographic areas increases brand awareness and product demand. 

These stores and service locations are also wholly owned 100% by Tesla, and there are no third-party vendors engaged in any of their sales or marketing endeavours. This allows them to strengthen and maintain the Tesla brand by having much better control over their inventory, pricing, and warranty services, as well as access to customer feedback.

Final Thoughts

Tesla stock pricing may not be perfectly accurate, but it certainly isn’t crazy high as there is still incredible growth potential. Just remember that Tesla is actually a technology company, not an auto company, so it should be compared with other tech companies. That way Tesla’s stock valuation will begin to make much more sense. 

Antoine Bechara
the authorAntoine Bechara
Antoine Bechara is a self confessed tech geek and a lover of everything technology. His mission is to bring you the latest news and info on a wide range of products, services and gadgets, and write about tech stories that interest him in the hope of entertaining you.