Should you still invest in Tesla stocks in the Netherlands?

Last year, Tesla “only” sold 4,151 new cars in the Netherlands — less than half of what was sold in 2020, and even less than the nearly 30,000 cars sold in 2019.  

In the meantime, the latest world events (ahem, the COVID-19 pandemic and Russia’s invasion of Ukraine) rattled global financial markets. The technology sector suffered a huge blow, giving up everything it earned in 2021. 

But despite everything going on, Tesla keeps breaking sales record after sales record in the US and Europe — just not so much in the Netherlands anymore.  

So the question remains, will tech stocks keep sinking? Should Dutchies still continue to buy Tesla shares or is the Netherlands just tired of Tesla?

Fierce competition

Apart from current events, all automakers know how difficult this industry is to work in and what fierce competition they face. 

Even as an innovator, other companies are breathing down Tesla’s neck. General Motors and Ford Motor Company produce some pretty popular electric cars that could give Tesla a run for its money. 

Or take BYD, for instance. Last year, in December alone, BYD sold 93,000 electric cars in China, which is not worse than Tesla’s average monthly sales of 102,000 vehicles in the fourth quarter of 2021. 

Faring better than expected

But, that’s not to say that investors should avoid investing in Tesla. Financial analysts are convinced this dip in Tesla stocks is temporary and that it’s still worth investing in this company. 

Besides its latest decline, Tesla was on top of the world in 2021 — they made nearly 1 million vehicles and ended the year with a solid 83% growth compared to 2020. 

Even if Tesla isn’t the top car manufacturer, they dominate electric cars sales across Europe. Sure,  Toyota Motors sold nearly three times the number of vehicles in the first half of last year. 

Toyota was also quicker than Tesla to develop a taxi fleet powered by hydrogen. But figures show that Tesla grew faster than Toyota. In 2021, it traded for 73 times its trailing 12 months of gross profit. For Toyota, the number was 22.

What’s in Tesla’s future?

Tesla’s plans for the future are even grander. Some analysts say Tesla’s success will grow, especially in Europe. They may even make a big comeback in the Netherlands — especially because of the shift to electric cars. 

The company expects to produce even more electric vehicles in the company years — and it’s likely to venture into other areas like autonomous cars, ridesharing, and renewable energy. Tesla may even work on a humanoid robot built to help people perform repetitive tasks. 

These new projects will allow Tesla management to move the business forward in the long run. Tesla has room to grow in the future so it will be worth investors’ attention and money.

Tesla shares might be expensive, despite its recent decline — Dutchies don’t like spending money. As of March 2022, Tesla stock trades at $1,091.84. 

But considering all the good points Tesla has to its credit, it seems safe to say that people who dare to invest in its shares now will win in the future.

Will you invest in Tesla stocks or not? Tell us what you think in the comments!

Feature Image:Depositphotos
Katrien Nivera 🇵🇭
Katrien Nivera 🇵🇭
Third culture kid Katrien has been working as a writer and editor at DutchReview for over two years, originally moving to the Netherlands as a tween. Equipped with a Bachelor’s in communication and media and a Master’s in political communication, she’s here to stay for her passion for writing, whether it’s current Dutch affairs, the energy market, or universities. Just like the Dutch, Katrien lives by her agenda and enjoys the occasional frietje met mayo — she just wishes she could grow tall, too.

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