Why I Dollar-Cost Average on Tesla Despite Subsidies Being Taken Away
Tesla’s Brand Power and Market Advantage
Even with subsidies being removed, Tesla still holds a significant edge in the EV market. People recognize Tesla as a leader in battery efficiency, software integration, and autonomous driving capabilities. Other EV manufacturers might struggle without incentives, but Tesla’s brand loyalty and technological superiority make it a preferred choice for consumers. If the price difference between Tesla and other EV brands is minimal, most buyers will likely still choose Tesla for its reputation, reliability, and resale value.
The Cost Parity with Gasoline Cars is Approaching
The removal of subsidies affects all EV makers, not just Tesla. However, Tesla has been aggressive in reducing costs through economies of scale and improved manufacturing efficiency, such as the Gigafactory and new battery technology. When the price gap between Tesla and traditional gasoline cars narrows, more consumers will switch to Tesla for the long-term savings on fuel and maintenance. As adoption grows, Tesla’s margins and sales volume could still increase despite the lack of subsidies.
Tesla’s Margins Allow for Strategic Price Cuts
Unlike many competitors, Tesla has healthy profit margins and can afford to lower prices strategically. This was evident when Tesla reduced vehicle prices in 2023 and 2024 to maintain demand. Even if government subsidies disappear, Tesla has the flexibility to keep its prices attractive while maintaining profitability.
Long-Term Growth in Energy and AI Sectors
Tesla is not just a car company—it’s a tech and energy company. The advancements in Full Self-Driving (FSD), energy storage solutions, and AI-driven robotics will add new revenue streams beyond vehicle sales. Even if short-term sales are affected by subsidy removal, Tesla’s long-term vision in AI and energy markets will drive growth.
Why I Dollar-Cost Average (DCA) on Tesla
Since Tesla’s price fluctuates with macroeconomic factors, regulatory changes, and market sentiment, dollar-cost averaging allows me to reduce the impact of short-term volatility. Instead of timing the market, I accumulate shares over time, ensuring that I get a balanced entry price. Given Tesla’s strong fundamentals, competitive edge, and ability to navigate pricing challenges, I remain confident in its long-term potential.@MillionaireTiger
@TigerTradingNotes @TigerStars @Daily_Discussion @TigerStars$Tesla Motors(TSLA)$
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