Tesla Motors Inc. (NASDAQ:TSLA)

CAPS Rating: 2 out of 5


Player Avatar MrRodgers (< 20) Submitted: 3/31/2011 5:04:49 PM : Outperform Start Price: $23.92 TSLA Score: +87.81

Some of these comments are just ridiculous. I'm guessing that most of these pitchers have to be over 75 years old with their logic. I agree that electric vehicles will not be huge players for several more years, but explode and electrocute? Come on. Have you ever been electrocuted plugging your tube TV or transistor radio into the socket? Doubtful. Setting aside the fact that gas stations aren't even ideal locations for chargers, you act like theres no electricity at gas stations as it is. The idiots I see smoking while filling up are a much bigger concern.
Anyways, I'm optimistic about the company. Just look at what a tight ship they run, the contracts they have with suppliers and other automakers(Toyota), and their superior technology.

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Member Avatar Walker6464 (76.19) Submitted: 4/2/2011 5:09:14 PM
Recs: 2

Just wait until you get electrocuted.

Member Avatar SunFade (< 20) Submitted: 4/4/2011 6:43:30 PM
Recs: 3

Tesla has quite a few Roadsters out and about and so far no electrocution complaints :-)
Elon Musk has a vision, and if the success of Space X is any indication he is pretty adept and realizing his visions. Tesla will either be one of the first Major Electric automakers on par with some of the great combustion makers in history, or at the very least be the driving force (both literally and figuratively) behind the all electric fleets coming out of the already established automakers, like Toyota.

Member Avatar kurtdabear (33.65) Submitted: 4/7/2011 12:07:52 PM
Recs: 5

Most of the people "over 75" (and some not quite that old) have player ratiings over 20. One of the reasons for that is called "life experience." We've seen companies with good concept cars go under before (think Tucker and DeLorean) as have mass manufacturers of good cars (think Hudson, Kaiser-Fraser, Packard and Studebaker).

Tesla is a concept car and a story stock. Most of us senior citizens got our "life experience" by losing money on great concepts and story stocks when we were young and starry-eyed. Regardless of how great the concept or how appealing the story, at the end of the day you still have to sell product at profit or go broke trying. Some of America's first cars were electric cars, but the proved unsuccessful. They still are impractical, for the most part, and have no mass appeal in the U.S. I would predict they will once again fall into obscurity once fuel-cell vehicles become economically viable (and that day isn't that far off).

Member Avatar MrRodgers (< 20) Submitted: 4/11/2011 5:54:12 PM
Recs: 4

Touche, and very well spoken, Kurt. I am no at all saying that Tesla will not be a complete failure(although I'm hoping for quite the opposite), I was simply humored by some of the logic behind WHY they will fail. If someone would have brought up infrastructure problems or details of their P&L, then I likely would have kept my mouth shut

Member Avatar joaquingrech (97.80) Submitted: 4/15/2011 4:52:42 PM
Recs: 2

I like Tesla but I have a hard time defending it's $2.2 BILLION dollars valuation. The expectation is about $30 mm on yearly profits for the first few years (and that's a big IF). They have around $250mm on orders but their cost is so high they margin is low. Meaning, a P/E will be close to a 100 for several years when they finally manage to become profitable. So basically, for the long run, this company is not going to cut it.

On the other hand, for the short run it might work pretty well. There are so many doubts that this company will even make money that even if they make $1 per car on a quarter, the stock would most likely double on hyper-media coverage. Insanity can last longer than a short position.

Member Avatar davidm8797 (44.68) Submitted: 5/5/2011 9:05:34 PM
Recs: 1

The anti - electric car nonsense is a smear campaign ala Edison electrocuting elephants to smear Nicola Tesla's name. Probably no coincidence Elon Musk named his car after the man. All that aside, Tesla doesn't necessarily make that great of a product so it might be hard to compete once GM starts popping out EV's that are actually decent. Still, they're first to market and that's huge. I see TSLA hitting 10B mktcap in the next five years. Maybe

Member Avatar Speleocaver (< 20) Submitted: 6/7/2011 11:46:50 PM
Recs: 1

The Tesla is using the most effective battery system good money can buy. The cells are proven and cheap!
If in the future Fuel Cells start coming out it is a simple matter to incorporate them into ANY electric car. Fuel cells are electric too!

I know that there are some Rich philanthropists tied into Tesla. They know that this is the technology that humanity needs. They are committed for the long haul.

The quality is top notch. 250 plus mile range...The body and systems chassis is made by Lotus in a joint venture. The style and ergonomics super light weight construction makes Tesla/Lotus the champions of the car of the future.

My money is on Tesla in a good market. The start-up would have failed a long time ago if it weren't for a series of like minded men interested in a solid product more than a profit. With an eye for what we need rather than what they can make a buck on..... at least for now!

Father in law always said.... Quality product first and the profit comes later..... My only complaint was the 100k price tag...
Well...They just came out with the family sedan that sits pretty at $35k SOLID!

Member Avatar spectechinvest (< 20) Submitted: 7/17/2011 4:20:59 PM
Recs: 3

GM simple doesn't know how to compete, they made the idiotic decision to kill the EV 1 in the 90's. They are too large a corporation that should have disappeared in bankruptcy. They are holding back progress of american innovation. (wow i cant believe i just said that but i actually thing its true)

Tesla is developing the best EV on the market that can go up to 300 miles on one charge with the largest touch screen display in the industry.
Telsa's model s is far sexier than the GM volt, and blows the hood off the curb appeal of the Nissan leaf (ugly)
   -Lets not forget that the Tesla model S is targeted at a certain demographic that can afford it people who shop where their retail (apple store esque) stores are located
   -They have almost run out of reservations for the 2012 launch supply
   -their only competition in looks is from Fisker's Karma which will be released this year at 100k per car. yet another california EV start up.
   -Lets not forget about the third california EV start up Coda Automotive from Santa monica which will release their EV in 2011 starting with fleet vehicles.
Tesla has revenue streams from its drive train that it sells to Toyota and Diamler

Once they announce the model X, this stock will start to gain momentum through the release of the model S, then after the model s there will probably be some fluctuation in share price as reviews come out and the car gets put to the test. BUT when the model X comes out in late 2013 the stock will start to move up again as people realize how cool and amazing this cars are and how DIFFERENT they are from GM, Chrysler who make horrible cars that my generation, generation Y simple does NOT want.

any thoughts?

Member Avatar CarEnthusiast (< 20) Submitted: 9/22/2011 11:45:46 AM
Recs: 0

@ Spectechinvest:

You make some great points and seem to be one of the few that are actually informed with regards to the EV market!

@ Pessimists:

Why are you commenting on a company like Tesla when you know little to nothing about them? Electrocution: is that a joke?

The reason that the Model T: which originally was produced as both gas, alcohol and electric, became completely gas is because of lobbying from those who had a vested interest in the proliferation of gas cars. Furthermore, everyone recalls Prohibition, which outlawed alcohol, right? Well that too was pushed through Congress, in part, to eliminate the possibility of alcohol run cars!

Electric cars from the very beginning were popular, especially among women. They did not necessitate getting out and turning a crank, which started the engine. This was not easy for everyone and that is why so many, at the time, preferred electric vehicles. However, the electric vehicle did not need the costly maintenance that gas cars do and the same is still true today. Gas cars need oil changes, filter changes, spark plug changes, and even more maintenance today due to the efficiency and added precision. Therefore, all of these maintenance necessities make money for the car manufacturer. The electric car is not as profitable with regards to maintenance so of course corporations and oil companies wanted to sell a product that would continue to make money long after they sold it.

The current Tesla Roadster Sport and the 2012 Model S only need to have the tires rotated and the windshield wiper fluid checked every five thousand miles. Tesla Motors is the first car company that is selling cutting edge technology that provides driving capabilities for 95% of the population. The other 5% will have to use gas cars until lithium ion technology evolves or super capacitor technology becomes practical.

With regards to profitability of this company they are still developing and practicing Economies of Scale. Therefore, once they release the 2012 Model S expect their stock price to go up. They are using much of the same mechanics as the the time tested Roadster which they have had almost a decade to perfect.

Those who say they have been around and experienced other car companies and therefore know what the future of this car company holds is just rubbish. They obviously have never seen any car quite like the Tesla Roadster or Model S and are not familiar enough with the cutting edge technology to comment.

Lastly, Toyota Motors recently signed a contract with Tesla Motors for 100 million dollars. Toyota is paying to use their technology in their new all electric RAV 4. That alone says something about their patented technology to at least give the company a closer look before speculating their future with regards to their current profitability.

Member Avatar DonkeyJunk (24.69) Submitted: 10/28/2011 4:42:16 PM
Recs: 0

I have a lot of faith in Elon Musk, but I think I'll wait a bit before putting any real money behind that faith.

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