Think It’s Too Late to Buy This Leading Tech Stock? Here’s Why There’s Still Massive Upside.
Tech investors panic as stock hits new highs—but the real rally hasn't even started.
Why The FOMO Is Misplaced
Everyone's chasing yesterday's gains while ignoring the fundamental drivers pushing this asset toward another 200% surge. The institutional money hasn't fully deployed yet—hedge funds are still dipping toes while retail investors hyperventilate over entry points.
The Infrastructure Play Everyone Missed
This isn't about quarterly earnings—it's about controlling the entire tech stack. Their cloud dominance creates a moat wider than most analysts comprehend. Legacy competitors can't pivot fast enough to counter the architectural advantage.
Timing The Peak Is A Fool's Game
Waiting for a pullback? So is every fund manager who missed the last rally—which means any dip gets bought aggressively. The 'overvalued' narrative persists among analysts who still value tech stocks like they're industrial manufacturers.
Final thought: If you're waiting for a 'safe' entry point in tech, you might as well buy bonds and embrace mediocre returns. Real growth requires swallowing volatility—and recognizing that traditional valuation models are about as useful as a fax machine in a blockchain world.
Why Tesla stock is still attractive on a risk/reward basis
Let's not sugarcoat matters; declining sales and margins aren't good news. However, instead of viewing the robotaxi business as the savior of a challenged business, investors should consider it the natural and inevitable evolution of the EV industry.
That's a viewpoint backed up by the fact that other automakers and technology companies have pumped billions into EVs, and notably, developing autonomous vehicles and the software that runs them.
Why Tesla's robotaxi strategy makes sense
The simple reason why is that the high upfront costs and much lower running costs (servicing, maintenance, fuel, etc.) of an EV compared to an internal combustion engine (ICE) mean that the best economic case for an EV should be as a vehicle that is constantly driven, not staying in a garage. In other words, a commercial fleet vehicle, a delivery vehicle, or a robotaxi.
Image source: Getty Images.
As such, Tesla's robotaxis and full self-driving (FSD) software aren't moonshots to "save" a company in competitive decline; they are an inevitable evolution of the auto industry. Whether they will be successful or not is another matter, but no company stands in a better position to commercialize the opportunity than Tesla.
If you believe this is the case, then there is still time to get in on Tesla's future performance as an investor.
