Tesla’s innovation in autonomous driving technology shows promise, but its high valuation and cyclical nature pose significant risks for long-term investors. The company’s revenue diversification, particularly with Full Self-Driving (FSD), is a positive aspect. However, concerns remain about macroeconomic sensitivity and the potential for downturns.
Valuation challenges arise from market expectations that leave little room for error, increasing the risk of downside losses. In contrast, companies like Amazon and Google offer exposure to autonomous technology with more stable financials, making Tesla’s stock less attractive.
For long-term investors seeking a comparable alternative, Tesla’s stock is not the most appealing option due to its high risks and lower return potential.
Source: https://seekingalpha.com/article/4744208-tesla-stock-big-potential-bigger-risks-and-better-alternatives