Stock (Symbol) |
Tesla (TSLA) |
Stock Price |
$208 |
Sector |
| Technology |
Data is as of |
| May 16, 2016 |
Expected to Report |
| Aug 3 – Aug 8 |
Company Description |
 Tesla Motors, Inc. is a United States-based company, which designs, develops, manufactures and sells electric vehicles, electric vehicle powertrain components and stationary energy storage systems. TSLA sells and produces a vehicle under the name Model S, which is a fully electric, four-door, five-adult passenger sedan. In addition to developing its own vehicles, it develops, sells, and services full electric powertrain systems and components to other automobile manufacturers. It also produces and sells stationary energy storage products for use in homes, commercial sites and utilities. It sells its vehicles through its own sales and service network. The Company also offers the Model X electric car, Supercharger charging stations and Powerwall, a home battery. Source: Thomson Financial |
Sharek’s Take |
 I drove a Tesla (TSLA) last month, and it was like driving a rocketship. I began my test drive in the Meatpacking district on New York City, and headed out to the West Side Highway, which is long, smooth and has stop lights every few blocks. The setting was perfect for accelerating the Tesla off the line — and boy did it ever. At red lights I would put the petal to the metal — and zoom — the car accelerated so fast it was like falling down the first leg of a roller coaster. Or like driving a rocketship. My body elevated off the seat, my left foot floated above the floorboard. Driving a Tesla is so fun and so advanced compared to regular cars that I feel 1/4 of America will be driving them in a few years. Worried about driving long-trips? The Tesla rep showed me how the GPS screen directs the driver to points along your journey to stop for 15-20 minutes every 4 hours and recharge. For free. No more paying for gas. At $35,000 the Tesla 3 is going to revolutionize cars like the iPhone did to cell phones, and should be in drivers hands by late 2017. Tesla’s CEO Elon Musk had a goal to grow sales from 50,000 cars last year to 500,000 in 2020 — and just reduced that time to 2018. That’s a ten-fold gain in sales, what can that do for the stock price? Nobody knows. What we do know is there’s outstanding growth opportunity here. Although profit estimates fluctuate, TSLA is expected to make $0.67 this year, $3.28 in 2017, $6.91 in 2018 and $12.14 in 2019. |
One Year Chart |
 Last qtr TSLA posted a loss of 57 cents, as it spent to grow. Sales jumped 45%. Profit growth Estimates show the company expected to lose money next qtr, then have growth of 179%, 207% and 181% the following qtrs. I don’t put a lot of faith in these numbers though as the company has been lowering and missing estimates. It’s really about the long-term with TSLA stock. |
Fair Value |
 Here’s TSLA’s annual profit estimates compared to last qtr:
2016 $0.67 vs $1.41e last qtr Big jump in 2018 & 2019 profit estimates. These are very far out, but a 40 P/E on $12 in profits would be a $480 stock. |
Bottom Line |
 Tesla is one of the greatest companies of our generation, and the stock fits the mold of past stock market winners in every way other than profits. The company is currently spending to grow, thus the stock is expensive by normal measures, and I feel eventually the profits will come. For now this gives investors a great opportunity to collect the stock well off its highs. TSLA ranks 3rd in the Growth Portfolio Power Rankings and 4th in the Aggressive Growth Portfolio Power Rankings. |
Power Rankings |
Growth Stock Portfolio
3 of 39Aggressive Growth Portfolio 4 of 16Conservative Stock Portfolio N/A |
