Stock (Symbol) |
Tesla (TSLA) |
Stock Price |
$176 |
Sector |
| Technology |
Data is as of |
| February 22, 2016 |
Expected to Report |
| May 5 – May 9 |
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) could have the most growth opportunity of any stock out there. The electronic car maker sold $50,000 cars in 2015. It could deliver 500,000 in 2020. For that to happen Tesla would have to continue to follow the Model T trajectory from 1909-1916. And Tesla’s doing it. It sold Model S sedans last year, up 51% year-over-year, to become the #1 selling comparably priced four-door sedan with a 25% market share of all premium sedans in the US. Tesla’s Model X SUV with falcon wings was just introduced and had 208 sales last qtr with production looking to ramp up to 1,000 a week in Q2. The next catalyst will be a Tesla 3, which is expected to be revealed next month with deliveries expected in late 2017. At $37,500 the 3 will revolutionize driving as the iPhone did to cell phones, bringing a higher level of driving to the masses. The company already has Autopilot is installed in its cars, and can update the software anytime for autonomous driving. And Tesla’s drive better as they don’t have tanks of gas swashing away when you turn a corner. TSLA stock has a chance to be something special, and its CEO thinks the stock could be worth as much as Apple’s by 2025, or 20x what it is today. The risk is right now the company isn’t profiting and thus is expensive. But profitability could come this Summer, as Tesla’s profits are expected to climb from -$0.87 last qtr to -$0.42, $0.12, $0.49 and $0.93 the next 4 qtrs. I will purchase TSLA in the Aggressive Growth Portfolio and Growth Portfolio today. |
One Year Chart |
 TSLA tanked within the latest stock market correction which set records for the worst start to a year. Now the stock may have stopped falling, and is attempting to rally with the market. Note in Estimates the company is expected to start profiting 2 qtrs from now. But, estimates are falling. Fantastic Est LTG of 101% a year but the stock’s selling for more than 100x earnings. |
Fair Value |
 My Fair Value on this stock is 75x earnings, which would be $106 this year and $242 next year. But I feel smart investors are looking further out. Here’s TSLA’s annual profit estimates:
2016 $1.41e |
Bottom Line |
 The last time Tesla broke out and bolted higher was in 2013, when it shot from $50 to almost $200. At the time I passed because the P/E was too high (smh). Now I feel the stock is at a low point and the new Model 3 will bring Tesla’s to the masses just as the iPhone revolutionized the world with smartphones. TSLA will rank 10th in the Growth Portfolio and Aggressive Growth Portfolio but I recommend investors be cautious and don’t make this a big position as the stock is risky as well as volatile. |
Power Rankings |
Growth Stock Portfolio
10 of 39Aggressive Growth Portfolio 10 of 20Conservative Stock Portfolio N/A |
