TERP - Forget Tesla: Brookfield Renewable Partners Is a Better Renewable Energy Stock
Tesla (NASDAQ: TSLA) was by far the best-performing renewable energy stock last decade. Shares of the electric vehicle (EV) maker have gained an eye-popping 2,040% since its initial public offering about 10 years ago, which has obliterated the S&P 500's roughly 209% return during that timeframe. Powering the stock has been a steady stream of innovation, including the rollout of its mass-market Model 3 sedan.
While the stock could have further to run, investors value it at an insane premium to other automakers even though it's not profitable. At some point, it will need to start making money to justify its valuation. If it struggles to turn a profit, then the stock could tumble.
That's why I think investors who are looking for a renewable energy stock should forget Tesla and consider Brookfield Renewable Partners (NYSE: BEP) instead. It offers visible growth, with a lot less risk, which could give it the power to produce higher total returns than Tesla in the coming years.