Stock (Symbol) |
Tesla (TSLA) |
Stock Price |
$362 |
Sector |
| Energy & Commodities |
Data is as of |
| September 11, 2017 |
Expected to Report |
| Oct 24 |
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 the Model S and Model X electric cars, Supercharger charging stations and Powerwall, a home battery. Source: Thomson Financial |
Sharek’s Take |
 This weekend, Bloomberg reported China is setting a timetable to ban fossil-fuel based vehicles. This news sent shares of Tesla (TSLA) 6% higher today. Still, sales of electric vehicles aren’t expected to eclipse gasoline ones until 2038 (source: Bloomberg New Energy Finance). The good news is there were just 695,000 electric vehicles sold worldwide in 2016, so there’s room for that figure to compound with the market at 84 million. Tesla delivered 12% of last year’s total market, and the company should be a major player in the years to come as it remains on a pace to produce 500,000 cars annually by the end of 2018. Tesla delivered 3000 vehicles in 2012, 22,000 in 2013, 35,000 in 2014, 50,000 cars in 2015, and 84,000 last year. Here’s its current lineup:
Long-term 20%-25% of Americans could be driving Tesla cars with Solar City roof panels charging the cars at night and providing power to the home. Billionaire fund manager Ron Baron feels investors could make 30 to 50 times their money in TSLA in 15 years. But one thing that could derail things is Tesla batteries — which could have issues — and a few months back Tesla said it didn’t hit sales targets due to a “severe” shortfall in battery packs. I feel TSLA could be a ten-bagger in ten-years, but I consistently take profits in the stock by selling off some of my position. Right now the company is losing money as it grows, but the stock is oh-so-close to breaking out and perhaps going on another run higher. In the end, I feel TSLA is a top-ten stock for growth stock portfolios. |
One Year Chart |
 Very pretty chart, but around a year ago analysts had projected the company would be making profits right now. Instead TSLA went from profits to losses 3QtrsAgo and now Estimates are for losses to continue for the next 4 qtrs. There’s no P/E as TSLA is expected to lose money in 2017 but the Est. LTG is 35% is great (I think TSLA can grow profits faster, say 50% or more a year). TSLA is on the verge of breaking out, and if it does growth stock investors need to be sure to own some. |
Fair Value |
 I don’t have a Fair Value on this stock as I can’t put a P/E on negative numbers. Analysts have estimates of $-6.26 this year, $-0.78 next year and $6.32 in 2019. |
Bottom Line |
 Tesla is one of the greatest investment opportunities of our lifetime, but carries risks including battery issues, competition and now electric companies being reluctant to buy energy from customers with SolarCity panels on their roof. TSLA ranks 7th in the Growth Portfolio and Aggressive Growth Portfolio Power Rankings. This qtr I switched TSLA from the Technology sector to Energy & Comoddities as I feel this is more of a play on the move to cleaner energy. |
Power Rankings |
Growth Stock Portfolio
7 of 33Aggressive Growth Portfolio 7 of 15Conservative Stock Portfolio N/A |
