Just as Tesla’s stock hits an all time high, Youtube sent me a 45 minute National Geographic video on the company (above). Though reminiscent of a commercial, it is definitely worth watching.
Anyone suggesting Tesla’s stock will drop as low as $20 needs to re-examine its‘ track record. Tesla is an innovator, who makes its own rules and it’s stock has consistently traded far above that. The more serious question for investors, whether the stock can stay in the +50 range or go even higher, is more problematic.
Tesla’s share price over the past two years
Here are a collection of opinions, arranged from cautious to expectant, gleaned from the net:
“the big momentum today is because of a large number of people betting against TSLA who are now buying frantically to cover their bad trades…. you have a compelling case for Tesla long-term. But don’t think that 15% pops are likely to happen again in the coming days. After this short-covering, expect Tesla stock to settle back into a groove. That groove will be much higher than previously, of course. But unless you were already in on TSLA, you might want to wait for the dust to settle before chasing this high-octane auto stock.” – Jeff reeves, The Slant
“TheStreet Ratings rates Tesla as a hold. The company’s strengths can be seen in multiple areas, such as its robust revenue growth and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins.” – the Street (April 26)
“Tesla may be the Apple of the auto business. By that, I mean it’s a company that’s disrupting an entire industry … not that it’s a stock going nowhere fast.” – Paul R La Monica, in CNNMoney
“Tesla has become the subject of an increasingly intense stock market battle. It has doubters who are betting against its shares because they don’t believe there’s substantial demand for the high-end cars that Tesla makes. But in recent months, as the company has started to report sales numbers for its sedan, its shares have climbed.” – Peter Eavis, DealB%k
“After years and years of blowing through millions of dollars, Tesla finally seems as though it can stand on its own two feet as a car company. As of this writing, Tesla stock is trading for about $50 a share. This stock market success stands in stark contrast to competitor Fisker Automotive, which was recently declared one of the worst venture capital disasters in recent history. But the road ahead is still full of potholes and detours that could derail Tesla’s hard-earned success. With Musk promising to deliver the Model X SUV next year, and a more-affordable sedan by 2017, Tesla Motors still has a long way to go.” – Christopher DeMorro, in Gas2
“Tesla is a tiny company in terms of sales in the automotive world, so the potential certainly exists for much bigger numbers if the company continues to execute. Tesla has a clear vision of its future, and this is undoubtedly baked into the stock price to some degree. Is there some amount of emotion involved here? I have no idea how that could be quantified, but it is certainly fair to say that many people around the world want to move away from fossil fuels as energy sources. If Model S owners start hugging Superchargers, I may have more to report on this story of Tesla enthusiasm. I doubt that Tesla’s CEO, Elon Musk, is going to stop pressing forward with an electric car revolution, because he is very competitive, and he knows that the objective is right. The world’s reliance on oil for transportation is a huge problem. Tesla should be making an announcement soon on its Supercharger network additions, which will spirit the EV revolution onward.” – Jack Collis, EV News Report
A recent post from the Motly Fool predicts the stock will rise even higher because
- “Tesla Motors is a disruptive innovator that’s bent on forever changing not only the way we drive, but also the way we buy cars. Unlike traditional car manufacturers, such as Ford or General Motors, Tesla doesn’t sell its cars through franchised dealerships. Instead, the company’s retail strategy relies on mall stores located in high foot-traffic areas… Auto-dealer groups in states such as New York and Massachusetts brought lawsuits against Tesla, saying that it violated state franchise laws. Tesla fought back, and won.
- the company continues to exceed expectations, and that’s when longtime shareholders will be rewarded.
- CEO Elon Musk “has a proven track record of success, including co-founding PayPal, which, in 2002, was purchased by eBay for a cool $1.5 billion. More recently, Musk made history when his company SpaceX launched the first commercial spacecraft to reach the International Space Station. Not to mention, SpaceX locked down a $1.6 billion contract with NASA, in the process.”
“With another big announcement at the end of the week, and Tesla winning a dealership battle in Texas, it’s no wonder the stock rose again. And I’m sure it will rise again….” – Zachary Shahan, of Clean Technica
