Tesla (TSLA) “has the best profit margin per unit in the automotive sector, and its business model is still profitable,” said Brian Mulberry, the Customer Portfolio Manager of Zacks Investment Management.
In addition, Tesla can monetize its complete autonomous driving offering, and its power unit can compensate for part of the contraction of its automotive activity, said Mulberry.
At this stage, the assessment of TSLA shares has dropped enough for the actions to deserve to be purchased, said Mulberry.
Tesla's positive catalysts
The margins per unit of Tesla remain higher than that of one of its competitors, and its income is still increasing from 18% to 20%, said Mulberry.
And although the company's electricity unit, which has increased by 180% in the past three years, still generates only about 10% of the company's revenues, the company can compensate for part of the lower and melting declines caused by the low TSLA automobile activities, according to Mulberry.
Finally, Tesla should be able to concede under license its FSD offer and other services it provides to other car manufacturers, estimates the stock selector.
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Read then: 20 best AI actions to buy now And 30 best actions to buy now according to the billionaires
Disclosure: None. This article is initially published by Insider Monkey.
