This in-depth report is a must read and may even convince you to buy up all of the TSLA shares that you can get your greedy little hands on, but we're not so sure that's a good idea. As Patel and Aalok mentioned in the report:
While the analysts would like us to believe that Tesla's low developmental costs, quick model launches, and its sole focus on electric vehicles are attributes that make the company stronger, we'd suggest that in many ways, these same attributes, especially the company's limited product diversity, makes Tesla more volatile and much riskier to invest in than, say, Toyota. But we encourage you to click here (PDF) to read about Tesla's potentially bright future and decide if investment in the company is the right thing for you.Tesla spends a fraction of what global auto peers spend to develop a new vehicle, and does it relatively fast. While Tesla is clearly effectively putting all its eggs in one basket, its sole focus on pure EVs should help it better conquer technical challenges and also keep costs low.
[Source: J..P Morgan via Green Car Advisor]