It’s been a bumpy trip for Tesla (NASDAQ: TSLA) holders in 2024 to date. However issues have undoubtedly been on the up lately. The share price is 24% greater than the place it stood only one month in the past. The S&P 500 has managed somewhat below 4%.

As soon as once more, we have now an instance of how inventory choosing has the potential to significantly develop my wealth at a quicker clip than monitoring an index. However how seemingly is that this to proceed?

Nicely, nobody is aware of for certain the place any inventory will go subsequent, notably one as divisive as this. However I feel there are at the least a couple of causes to be optimistic.

October may very well be particular

One motive to be bullish on Tesla inventory within the close to time period is the forthcoming reveal of the agency’s robotaxi (or Cybercab). That is set for 10 October. There are additionally rumours that will probably be offered on the Paris Motor Present a couple of days later.

Along with this, we would get contemporary information on updates to current vehicles such because the Mannequin Y. This could seemingly get drivers salivating provided that the present model was the world’s best-selling automotive in 2023.

One other improvement is the corporate’s plans to launch Full Self-Driving software program in Europe and China in 2025. That is assuming it will get approval from regulators. That would turbocharge abroad income for the Austin-based enterprise.

All this helps to elucidate why the shares have completed so nicely in September.

Issues I’m cautious of

Naturally, there’s no scarcity of dangers in the case of Tesla. Chief amongst these, in my opinion, can be the corporate’s greatest asset.

Like lots of people, I like Elon Musk for his imaginative and prescient. However I’m additionally as involved as ever by his willingness to get entangled in (on-line) scraps with, nicely, anybody. Personally, I like enterprise leaders to stay to their knitting and never waste their expertise and time on crafting social media posts. In fact, one would possibly argue that the Tesla share price couldn’t ship the kind of returns it’s managed during the last month with out somebody like Mr Musk.

Extra typically, there’s are so many issues that might probably influence manufacturing and gross sales. These vary from an unwelcome bounce in inflation to sudden points with these aforementioned regulators.

This could be superb for me if the inventory was buying and selling on the kind of P/E ratio we’re used to in UK markets. However Tesla isn’t and by no means has. And Musk has missed loads of deadlines earlier than.

Extra thrilling than Tesla?

I’m not an enormous fan of instantly holding go-go development shares the place feelings moderately than fundamentals seem to have a bigger affect on their price. So, on the threat of sounding like a caught file, this is the reason I stay comfortable to get publicity to Tesla through FTSE 100-listed Scottish Mortgage Funding Belief. Proudly owning this additionally provides me entry to a different firm run by Elon Musk: SpaceX.

Now, if the latter have been to present any indication of going public, the influence on the belief’s share price may very well be eye-popping. Because of this I’ve been including to my Shares and Shares ISA holding on and off during the last 12 months or so. The goal is to maintain doing so when money turns into out there.