ECOM050 Investment Management

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Investment Case: Tesla, Inc. (TSLA)

Introduction

Tesla, Inc. is a leading global electric vehicle (EV) manufacturer and renewable energy company headquartered in the United States. This report builds a compelling case for investing in Tesla stock by analysing the sector outlook, fundamentals, and risks, ultimately supporting a strategic investment decision.

Investment Case

Tesla represents a high-growth stock within the EV and renewable energy sector. The company’s strengths include technological innovation, brand recognition, and expanding global production capacity. Tesla is at the forefront of EV adoption, battery technology, and energy storage solutions, providing investors with both growth potential and exposure to sustainable industries.

Key highlights:

• Market leader in EV sales with a growing market share globally.

• Expansion into international markets including China and Europe.

• Strong brand loyalty and consumer recognition.

• Integration of solar energy and energy storage solutions complements automotive operations.

Sector Outlook

The global EV market is projected to grow at a compound annual growth rate (CAGR) of approximately 21% from 2025 to 2030, driven by government policies encouraging low-emission vehicles and advancements in battery technology (IEA, 2023).

Key drivers for sector growth:

• Increasing environmental regulations and carbon emission targets.

• Declining costs of lithium-ion batteries.

• Rising consumer awareness of sustainable transportation.

Challenges include supply chain constraints for raw materials like lithium and competition from traditional automakers entering the EV space. Despite these risks, the sector outlook remains robust, creating a favorable environment for Tesla.