Tesla’s (TSLA) High Margins Make It Attractive, Longtime Stock Picker Says
From Yahoo Finance: 2025-04-22 16:01:00
Tesla (TSLA) has the best per-unit profit margin in the automotive business, according to Zacks Investment Management’s Client Portfolio Manager. The company’s business model remains profitable, with positive catalysts like the Full Self Driving offering and the Power unit offsetting auto business contraction.
Tesla’s per-unit margins are higher than competitors, with earnings growing at an 18% to 20% annual rate. The Power unit, which grew 180% over three years, can offset revenue declines from the auto business. Tesla may license its FSD offering to other automakers for additional revenue streams.
Jim Cramer urges Tesla, Inc. (TSLA) to ‘Bring on the Humanoids.’ Despite the positive outlook for Tesla, some believe AI stocks offer greater potential for higher returns in a shorter timeframe. Explore the potential of AI stocks for promising investments in the market.
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