Stock (Symbol) |
Tesla (TSLA) |
Stock Price |
$214 |
Sector |
| Technology |
Data is as of |
| January 2, 2017 |
Expected to Report |
| Feb 8 – 13 |
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 |
 Tesla (TSLA) will revolutionize the world as we know it. Within the next few years a large portion of Americans will be driving Tesla cars with Solar City roof panels not only charging the cars at night, but providing power to the home as well. When you drive a Tesla, you feel an experience like no other. The car is possibly faster than anything you’ve driven before, with acceleration that takes you right off your seat, and a floor-mounted battery that lowers the center of gravity to reduce rollover. No floppy gas tank in the back makes cornering swift and precise. Charging on long trips won’t be an issue as the GPS maps out where to stop for 20-minute recharge breaks every 4 hours or so. Tesla’s CEO Elon Musk has delivered 3000 vehicles in 2012, 22,000 in 2013, 35,000 in 2014, 50,000 cars in 2015, and has a goal of 500,000 in 2018. Tesla’s flagship is the Tesla S, which went from prototype to production in 2012 and by 2015 one-quarter of all U.S. Large Luxury Vehicle sales were a Model S. The Tesla Model X, which went into production in 2015, is an all-wheel drive SUV with falcon wing doors, seating for 7, and is ridiculously fast. One of the greatest catalysts of our time will be the Tesla 3. At $35,000 the Tesla 3 is expected to be in production mid-2017 and will bring Tesla’s technology to the masses. The next venture will be the Tesla Y compact SUV, followed by a minibus for public transportation (I’m assuming driverless). This company is years ahead of the competition in regards to electric cars and autonomous driving, and could have 25% of the U.S. car market within a decade. Billionaire fund manager Ron Baron feels investors could make 30 to 50 times their money in 15 years. |
One Year Chart |
 TSLA was expected to make $0.06 last qtr and bat the street with a profit of $0.71. That’s the good news. The bad news is qtrly Estimates fell and now show losses the next 3 qtrs with -69% profit growth 4QtrsOut. Annual profit estimates fell too. 2016 from -$0.93 to -$2.11, 2017 from $1.70 to -$0.65 and 2018 from $5.62 to $1.34. Tesla is building an expensive battery Gigafactory in Nevada which will run on 100% sustainable energy. I feel the Est. LTG of 35% is way too low as I expect profits to someday compound every year or two. |
Fair Value |
 It’s tough to put a near term price target on this stock. Someday $10 in profits and a 75 multiple would be a $750 stock but that’s pie-in-the-sky. This stock is like Amazon and Netflix in that you have to ignore the current profit figures as these companies spend to grow and imagine what the company might make a decade from now. |
Bottom Line |
 Tesla is one of the greatest investment opportunities of our lifetime, but the stock hasn’t moved in a steady fashion. In fact, there’s been two long-term bases in the stock’s short history. My guess is this stock could make another move higher once the Model 3 begins production, which could be later this year. TSLA ranks 7th in the Growth Portfolio and Aggressive Growth Portfolio Power Rankings. |
Power Rankings |
Growth Stock Portfolio
7 of 35Aggressive Growth Portfolio 7 of 18Conservative Stock Portfolio N/A |
