Since the first Tesla, the Roadster sports car, debuted back in 2008, the automotive world has never been the same. Over the past 15+ years, Tesla has launched an array of other vehicles, including the Model S sedan, the Model Y mid-size SUV and the Model X SUV.
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As society continues to prioritize sustainable energy, more Americans are starting to consider — and buy — electric vehicles (EVs). But Tesla isn’t necessarily cheap, though some models do have a reasonable starting price. When things are (relatively) new and still expensive, that has a tendency of putting off those who might otherwise be interested.
GOBankingRates asked Scott Neu, an accredited investment fiduciary (AIF) and financial advisor at Reinke Gray Wealth Management, why he thinks Tesla is a smart investment. Here’s why he thinks it’s still a good buy.
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It’s Not Just About Buying a Car
“There are several reasons why investing in a Tesla can be considered a smart move,” said Neu. “Tesla’s innovative technology and strong brand loyalty have created a unique market position. People aren’t just buying a car; they’re buying into a vision of the future, which adds value to the investment.”
The market for EVs is growing, but Tesla still stands out for its unique business model.
When Elon Musk first launched the company, he said their mission was “to accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible.” That same mission has helped Tesla create a very successful business.
Unlike many other car manufacturers, Tesla has a direct sales and service model — that means no franchised dealerships. Even when the company first entered the market, it stood out for having an attractive vehicle that spurred demand for more EVs.
Once it had the public’s attention, Tesla then started to home in on its vision to create a world with more sustainable transportation. Over a relatively brief period of time, it’s created a network of Tesla-owned showrooms across the world, emphasized customer experience and continued from there.
All of this is to say that Tesla is an investment in its vision and in the future, both of which make it a great for the long term.
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It’s Also a Lifestyle Choice
Buying a Tesla is also about making a lifestyle choice, one that can have short- and long-term gains on a personal level.
Tesla has made continuous advancements in areas like battery technology. Of course, this is something that improves vehicle performance. But at the same time, it also strengthens the company’s position in the renewable energy sector.
“Personally, I’ve seen how these innovations have resonated with consumers who prioritize sustainability and cutting-edge tech, making Tesla more than just a car — it’s a lifestyle choice,” said Neu.
Tesla doesn’t just produce cars either. For those who really want to hone in on this lifestyle choice, the company also designs, produces and sells:
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Battery energy storage devices (for the home and grid)
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Solar panels
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Solar shingles/roofing
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Powertrain systems (to other manufacturers)
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Home batteries (these connect with existing solar energy systems)
In terms of cars, Tesla also offers Mobile Service Support. These are mobile technicians who will make house calls for those who need the extra support. There’s even a remote option for those who prefer a less hands-on experience.
The Company Is Resilient
Since its inception, Tesla has also boasted some impressive financial performance and market growth. Again, this is good news for those thinking about buying a Tesla or investing in the company in other ways.
“Despite the volatility of the stock market, Tesla has shown resilience and even dominance in a highly competitive industry,” said Neu. “The company’s ability to generate buzz and maintain a loyal customer base gives it an advantage over traditional automakers. As an investor, this translates into a potential for long-term growth and value appreciation.”
Even if you simply buy a Tesla vehicle and nothing else, you can still experience these financial advantages yourself. According to Solar Reviews, new Teslas cost anywhere from about $38,990 to $116,630. That said, even used vehicles tend to retain their value well, especially when kept in good condition and with minimal miles driven.
Many Tesla models are also eligible for a federal tax credit of $7,500. This can bring down the base price and make them more accessible to new buyers.
Then, there’s the added financial benefit of saving on gas. The U.S. Department of Energy compared a 2021 Tesla Model Y alongside a standard, non-EV and found that the Tesla cost $1,100 less per year due to fuel savings.
While some Tesla owners opt to get their own at-home charging station, the company also has a network of over 30,000 Superchargers where customers can charge their vehicle for less.
Right now, Tesla is one of the most popular electric car makers out there. In fact, Cox Automotive reported that the company holds roughly 49% of the EV market share. This makes for a solid long-term investment, both on a personal and financial level.
“From my perspective, having a stake in Tesla isn’t just about owning a piece of a car company,” said Neu. “It’s about being part of a revolutionary shift in how we think about transportation and energy.”
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This article originally appeared on GOBankingRates.com: I’m a Financial Expert: 3 Reasons a Tesla Is Always a Smart Investment
