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Now Is a Great Time to Invest in Tesla Stock

Updated on December 17, 2017
Chuck Bluestein profile image

At age 16 I was a volunteer at a hospital bacteriology lab. I became a chemist for U.S. government. Then I studied health & related fields.

Tesla Stock (TSLA)

New Tesla model 3.
New Tesla model 3. | Source
The supercharger stations that Tesla has so people can get a free charge.
The supercharger stations that Tesla has so people can get a free charge. | Source
Tesla Model S car.
Tesla Model S car. | Source

Invest in Tesla Stock (TSLA)

Numbers do not lie. Tesla Motors Inc is now Tesla Inc. It is much more than a car company. Its stock is $357 a share. It is said to be too high. They will always say that even when it is the biggest company on the planet. Exactly one year ago the stock was $217 a share. That is a rise of 65% in one year.

Its batteries and solar cells prevent brown-outs in California, powers an island in Hawaii and powers an area in South Australia that has trouble with grid. Passed Ford and GM becoming largest auto maker in U.S. Just passed Mercedes Benz becoming third largest car company in world. Toyota is the biggest.

Tesla Inc. (TSLA) gained a potential key ally in China after the country's most valuable company, Tencent Holdings Ltd., revealed it had bought a 5% stake in the Silicon Valley electric-vehicle maker.

The $1.8 billion investment marks a vote of confidence in Tesla Chief Executive Elon Musk at a time when he faces questions about whether he can meet his ambitious goals of delivering the $35,000 Model 3 sedan on time later this year and at the scale he is projected.

They did this since Tesla is way ahead of any car company in making a self-driving car a reality. Chinese spend a great amount of time in cars and want to make more available to them.

Tesla is building Gigafactory 2 in Buffalo, NY that will create solar roofs for houses and cars. Tesla christens Buffalo solar factory ‘Gigafactory 2’, will finalize locations of Gigafactory 3, 4 and possibly 5 this year.

Tesla’s current “Gigafactory 1“, which will be the largest factory building in the world by footprint, isn’t even finished yet and Tesla is already looking to finalize the locations of future plants by the end of this year.

“Giga” is a metric prefix meaning “a billion,” so “Gigafactory” was originally a reference to a single factory capable of producing billions of cells.

The latest update is based on billionaire Ron Baron and Tesla buying SolarCity. First Mr. Musk is busy with his full time job as rocket scientist for SpaceX and does Tesla in his spare time. Tesla is similar to Amazon.com. They had no interest in profits, but only in growth so they invested profits in growth.

The stock investors did not like this. But the owner and founder of it, Jeff Bezos, who owns 18% of the stock is now the third richest person in the world with $65 billion.

So billionaire Ron Barron is expecting Tesla to grow 50 times in the next 15 years. Since its stock is less than $200 a share that means that it can be worth $10,000 a share in 15 years. Now if it goes under then everyone will agree that its stock price was very overpriced. If it becomes huge then everyone will agree that its stock price was very under-priced and they wished they had bought some stock.

Not mentioned is that it is years ahead of other car companies in the car driving itself and they can build enough solar cells and wind turbines to provide all the electricity needs for California and Nevada at its huge factory that is the biggest building in the world. Also it is not putting solar cells on its roof since its roof is already made of solar cells.

It does mention that people that love oil, hate Tesla. Read article and watch video of billionaire called Billionaire Ron Baron: I could make 30-50 times my money on Tesla over next 15 years. I also just read that Tesla is going to build a gigafactory in Europe and in China.

There will not be enough batteries to keep up with Tesla's demand for batteries. So Tesla will be building the biggest lithium ion battery factory in the world. It is called a gigafactory, giga factory or giga-factory.

So Tesla is no longer just a car company. Panasonic makes batteries for Tesla and is considering investing $1 billion into the giga-factory. Morgan Stanley raised its target price of Tesla (TSLA) from $153 a share to $320 a share.

This is similar to Amazon.com. It started out as a book company but now it sells everything. Today Tesla stock closed at $248 a share. Also Consumer Reports chose the Tesla Model S as the best overall car for 1014. Tesla stock has gone up sixfold (over 600%) in the last year! End of Update.

To take advantage of the growing need for lithium-ion batteries (Li-ion batteries or LIB) see this article How and Why to Invest in Lithium Stock. I just added new information to this article (May 2014) like how the demand for lithium may double in the next 3 to 5 years.

People who drive the model S appreciate driving the best car ever. Also it was rated as the safest care ever (see below). Tesla has built all these charging stations around the country and 6 in Norway where Tesla cars can get charge for free.

Tesla is the only car company not selling gas cars. So it is the only car company that is serious about getting the world to use sustainable energy. It is currently the only hope for the electric car to become the dominant car in the world. The CEO of Tesla, Elon Musk, was already a billionaire genius. So he no longer cared about money. He decided to change the world and get it using sustainable energy.

This information is for investors not traders. When you invest in a company it is not for what it is now but what it will become. Since buying stocks is a gamble, you are not supposed to invest money into a company unless you can afford to lose it. So Tesla stock will be overvalued and will continue to be overvalued until it is over $900 a share.

Say that there is a stock that is extremely overvalued, but you think that the stock will go up. Do you buy it? Yes! Say there is a stock that is extremely undervalued. It is worth much more than its stock. But you think that the stock will go down. Do you buy it? No! This is not rocket science. The CEO of Tesla Motors is Elon Musk. He is the CTO (Chief Technology Officer) of SpaceX. He is a rocket scientist and a billionaire genius! NASA thinks he is the one.

People who buy this car love driving it and feel that it is the best car ever made so they want to buy stock in it regardless of what others think or predict. Also there are many people who think that gas and oil is dirty and want clean sustainable energy. So they are motivated to invest in this. Also some like the saying "out with the old and in with the new." Elon Musk says that a hybrid is just a gas car with good mileage.

The gas powered cars have emissions that are undesirable and governments punish the car companies for it. Electric cars have no emissions and the governments reward companies for this. This translates into actual money. More and more people want to go green and leave a better planet for their children. Investing in Tesla is a step in going green.

Tesla CEO, Elon Musk says "We are not trying to build the world's best electric car. We are trying to build the best car period." Here is an August 26, 2013 article that was written after this article. It is called Why Tesla Is The No. 1 Performing Stock by Ian Wyatt. This webpage about Ian Wyatt says:

Ian founded Wyatt Investment Research in 2001 (formerly known as Business Financial Publishing), a publisher of investment newsletters and web sites for individual investors. With an audience that includes over 450,000 individual investors from around the world, the company is known to be a valuable source of unbiased investment opinions.

Why Tesla is the No. 1 Performing Stock says:

The electric car company that Wall Street doomed for failure did something that few people expected. It succeeded. That company is Tesla Motors (TSLA), and its award-winning Model S sedan is now a legitimate player in the auto world.

I wrote: "Many investors are simply missing the boat on Tesla. They're too shortsighted and are unable to look out three to five years and understand just how Tesla can grow and transform the automotive world."

But I think Tesla offers one big lesson for investors. That lesson is never to sell your winners too early. A close friend of mine bought 1,000 shares of Tesla on my recommendation when the stock was at $35 [a share]. After shares jumped to $50, he cashed out and walked away with a $15,000 gain in a few weeks. But what he gave up was the $127,000 in profits he would have earned had he simply held on to his shares.

You can see the chart on the right on how the stock has been growing. On May 12 the stock was around $94 a share and I wrote this article: Tesla Motors: The Moral Man's Victory for the Health of the Planet. This article started out by telling how Consumer Reports gave the Tesla Model S the highest score it had ever given of 99 out of 100.

CNN says:

"If it could recharge in any gas station in three minutes, this car would score about 110 [out of 100]," said Jake Fisher, head of auto testing for Consumer Reports. Fisher called the car's performance in the magazine's performance tests "off the charts."

But that is the old news and people back then did not know about the following. They had some of the supercharging stations back then and they knew that they were building more. But later it was announced that not only could they wait 30 minutes for a free charge, but they can also pay for a battery swap taking only 5 minutes.

Here is an article called Tesla Model S Achieves Best Safety Rating of Any Car Ever Tested in case you want to read more about that. Also here is an article about what is going on in Hong Kong which is part of China called Tesla Aiming for China After Hundreds of Hong Kong Orders. It says:

Hong Kong offers advantages that Tesla won’t find in the mainland. While the territory is controlled by China, it remains largely isolated by geography and culture.

Ho is among the 300-plus Hong Kong residents who have made refundable deposits of HK$39,000 to HK$330,000 ($5,000-$42,500) to reserve a Model S, even before the company has said how much the cars will cost.

This article, Tesla, Japan Drive EV Charging Station Expansion says:

By the end of 2013, the Americas will account for about 1,400 charging stations [for electric vehicles (EV)], Europe/Middle East 1,600 and Asia/Pacific 2,900, says IHS Automotive.

Fast-charging stations for EVs will reach 199,000 locations globally in 2020, says IHS Automotive.

Here is an article called Tesla California sales beat Chrysler, Volvo, Cadillac, other big names. It says:

In June 2013, Tesla sold more vehicles in California than ten big-name brands: Cadillac, Chrysler, Lincoln, Jaguar, Buick, Land Rover, Mitsubishi, Porsche, Fiat and Volvo.

So with all this happening in the last 3 months then as an investor, your job is to imagine what will be happening in the future. That is what it is important. Their factory in California is making the model S at a rate of 500 cars a week and expect it to be doing 770 a week soon. That was before this new assembly plant.

September 4, 2013 Update about Norway

Gas in Norway cost $9.60 a gallon. Tesla just built 6 supercharger stations in Norway. Now 90% of Norwegians live within 200 miles of one of these stations. Norway has the highest rate of electric cars of any country. In August and September (2013) Tesla sold over 500 cars in Norway-- more than any of the other car companies.

Cabot Heritage Corporation

I just came across the 10 stock picks by Cabot Heritage Corporation from the beginning of 2013. They are 1. EOG Resources (EOG- oil and natural gas), 2. Jamba Juice (JMBA- smoothies), 3. First Solar (FSLR- soar power), 4. Equifax (EFX- information solutions), 5. F5 Networks (FFIV- computer technology), 6. Linkedin (LNKD- social media), 7. Salesforce.com (CRM- business software), 8. Seaspan Corporation (SSW- one of the world’s leading owners of containerships), 9. Stratasys Corporation (SSYS- 3-D printing) and 10. Tesla Motors (TSLA). It says:

In fact, though I work very hard to avoid falling in love with stocks, I will confess that TSLA is my favorite stock.

The Tesla Model S has won:

• Motor Trend’s Car of the Year Award, with the first-ever unanimous vote.

• Automobile Magazine’s Automobile of the Year Award.

• Yahoo Autos’ Car of the Year Award.

It can go from 0-60 MPH in 4.1 seconds (with the biggest battery pack); that’s quicker than a Porsche 911. Or it can go 300 miles on a single charge. Its center of gravity is so low (the battery is the floor) that it corners like a go-kart.

Here are 5 things that they like about Tesla. First is electric and uses no gasoline. Second, its cars are made in California, guided by a business plan generally used for technology companies. Third they are sold directly from the company, not through dealers. Fourth they have no inventory just a backlog of orders so each car is manufactured for a specific customer. Fifth they offer no financing and have all the money upon delivery of the car.

Even though this is brand new information, it fits right into the theme of not knowing what Tesla is going to sell next. They are first in line in America of this new technology that is said to be a $2 trillion industry that has $0 in business now. Tesla is a technology business.

I even had to look it up. It is called the autonomous taxi market. Autonomous means no driver or driverless. It is taxis that drive themselves. It can make it almost nothing to own a Tesla car. You can read all about it from CNBC on the article, Investors Who Say Tesla is Overvalued are Missing This Opportunity.

Hitler's Short Position in Tesla is Ruined

2013 Teslive Event

How the Tesla Model S is Made -- Behind The Scenes

Comments

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    • Robert Sacchi profile image

      Robert Sacchi 

      12 months ago

      Thank you. This is a very informative article that lays things out logically.

    • Dmitry Kresin profile image

      Dmitry Kresin 

      2 years ago from Ukraine

      Would be great to get it!

    • Chuck Bluestein profile imageAUTHOR

      Chuck Bluestein 

      2 years ago from Morristown, AZ, USA

      My guess is in 2017.

    • Dmitry Kresin profile image

      Dmitry Kresin 

      3 years ago from Ukraine

      When do you think will Tesla Motors do a cheap city car?

    • profile image

      Camila 

      4 years ago

      Unless I am mistaken, Mr Musk has twteeed that his cross country trip on Super Chargers is now finalized but that does not mean it is completed, only very well planned.NB: This takes nothing away from the positive vibes of this news, just to correct a small detail.

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