+ Watch TSLA
on My Watchlist
Buy the car ~ not the stock
A negative P/E of over 300; are you kidding me?
1. Number of cars sold growing every year2. They are also going to lease market and less formidable for everyone3. No idea, How many china can buy.. just like number of apple iPhones sold in china4. Working on cheaper battery packI own TSLA instead of Amazn with High P/E ratio.
Tesla is here to stay: the model S is the greatest car ever invented!
I'm a bit late on this one.TSLA is a visionary company, not doubt about that. However, they are almost universally perceived as so cool, and revolutionary, that the "wisdom" of the crowds has bid the company's stock up to an irrational valuation.In my opinion, for TSLA stock, at current prices, to translate into attractive investment, I think they'd need to go from $0 profits today, to AT LEAST $1-2 billion in profits over the next 5 years or so.Mungofitch pointed out that TSLA sells for about $1.4 million per vehicle sold in 2013, and about $904,000 per vehicle using 2014 volume estimates.This is compared to about $6,000/vehicle for GM, $18,000 for Toyota, and $10,000 for Ford.The amount of growth that is "baked in" to TSLA's valuation is truly staggering. So staggering, I think, that I think the risk of TSLA NOT meeting those lofty expectations is very high.I calculated, very roughly, that even if you assume an extremely very rosy 10% net margin (2-3x that of F or GM) TSLA's would need to increase revenue by about 500%-1000% in the next 5 years or so to even begin to justify the current valuation as reasonable. In a scenario where TSLA's future margins are more "typical" of the auto industry, they'd need to increase revenue by 1000%-2000% in the next 5 years or so. And, let's not forget, the auto industry is damn competitive, and most auto manufacturers do not make attractive returns on capital and equity over the long-term.Could TSLA sell enough cars to justify the current valuation? Sure, ofcourse they MIGHT.But how likely is it that they will NOT meet these sky-high expectations baked into the stock price? Very likely in my view.Therefore, I expect TSLA will under perform the market at from the current price.
Seems like Tesla has brilliant leadership and its innovative products have relevance for our need to change the way we have been consuming fossil fuels. I am inspired by Elon Musk's multifaceted approach: solar, electric cars, batteries, space. Financially, I think Tesla has wisely started with funding the high end cars. If $40,000 cars that get at least 200-mile range can come out in the next few years, I think Tesla will outperform the market over the next 5 years.
Still priced way too high. How long will investors pay this much for a stock that won't earn more than a dollar share for another 2 years?
Too expensive but interesting
Once the cost of their batteries goes down in the next couple years it'll be cheaper to produce cars and their revenue will go up.
When you create the market you earn the first mover advantage, which allows you to set the frame for the technology. Eventually this market will be much larger than it is today. The technology will improve allowing Tesla to make more efficient batteries. Look for Tesla batteries to power new technology across industries. The growth potential here is higher than what has already been factored into the stock price.
TECTONIC shift is being created by Tesla. It will beworth more than AAPL
He is silicon valley and modeled to be like Steve Jobs. Marketing and perfection of product can change the world
How deep do we need to drill before we understand that oil is limited? Oil companies are drilling in more and more difficult locations, why? Electric cars... Edison is about to rise from the dead.
Momentum and "green" for eco-minded folks in populated areas where most people live.
Innovative and potential leader for the future of the car industry.
Meets FOOL requirements first. Second, the value TSLA offers is not totally about dollars. We have to believe that a solution for the future exists now. Bottom line I think a lot of the stock value today reflects the future payoff.
Unfettered growth in an emerging market. New sales model without dealers will hurt in a few states (TX, NJ) but will only lead to direct pricing and better relationships with customers.
With Elon Musk as CEO, the Idea is to do what is best for everyone. The car's performance, environment and source of power is virtually everywhere. Electrical motor is the most efficient source of movement with fewest number of parts with maximum longevity. Tesla seams to have cracked the code for portable electric storage. Tesla did not invent these things, but like the rest of history was able to see and pull all necessary parts together to make it work. Plus Elon has the vision to protect whats been built on from others trying to stop him from exceeding. Elon has the reputation of achieving excellence where others first interest is money. Build a better mouse trap people will buy it. This is why Tesla will outperform.
Musik is overrated, will keep diluting stock until he gets what he thinks is a fair return
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