Now is a Great Time to Invest in Tesla Stock
Tesla Stock (TSLA)
Invest in Tesla Stock (TSLA)
Update April 9, 2017
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.
Update February 22, 2017
Tesla is now 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.
Update November 5, 2016:
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. Presidential candidate, Hillary Clinton loves to use fracking to get oil from the ground whereas Green Party candidate, Dr. Jill Stein (M.D.) is against fracking. 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.
New Update February 25, 2014:
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.
Latest News: May 9, 2014
This is a great time to buy Tesla stock since it is at a low point now and because of the following. CEO of Tesla Motors, Elon Musk, has announced that Panasonic has signed a letter of intent to be their partner in the giga-factory. They have a team of people working out all the details of the contract. This comes from the article called: Tesla Motors' (TSLA) CEO Elon Musk on Q1 2014 Results - Earnings Call Transcript.
In 2013, Tesla made and sold about 7,000 cars. In 2014, they will make and sell about 35,000 cars. The demand is still much greater than the production. The new Fremont factory will be making 1,000 cars a week by the end of 2014. [End of update]
This was written August 25, 2013. The biggest complaint about Tesla stock is that it is overvalued. The root word of ignorance is ignore. So when you ignore important things you end up with ignorance. So here is what is ignored when figuring the value of Tesla stock.
The Tesla model S (850 kWh) can get 265 miles on a charge (60 kWh-- 205 miles). The next highest is the Nissan Leaf with 84 miles on a single charge. So 84 miles is not enough to consider an electric car for most people. Consumer Reports did not rate the model S as the best electric car. It rated the model S as the best car ever!
Latest news Friday, February 21, 2014
Tesla stock closed today at $209.60. Tesla is building a factory to make batteries saving them money on the batteries they put in the car. Also they will be selling them to their sister company, Solar City, that puts solar cells on houses. When I wrote this article SCTY stock was $35 a share. Now it is $75 a share.
So this is ignored when it comes to the value of the Tesla stock but people who drive the model S appreciate driving the best car ever. Also it was rated as the safest care ever (see below). That is also ignored. Also Tesla has built all these charging stations around the country and 6 in Norway where Tesla cars can get charge for free. This is also ignored as far as its value.
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!
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.
September 19, 2013 Update
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.
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.
"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 August 23, 2013 article called Tesla Opens Netherlands Assembly Plant. It says:
Tesla said the Tilburg facility will serve as the final assembly and distribution point for Model S vehicles sold in Europe as well as Tesla’s European service and parts headquarters.
“This location is pivotal to Tesla’s European operations, which are expanding rapidly over the coming months with openings of around 15 new stores and service centers.”
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.
In 2014 they will be making the Tesla model X for families or large groups of big people. A video on it showed that easy holds people that are very big. Then their next step is to come out with an electric car that is about $35,000 so that most people can afford it. Also Tesla does make money selling their batteries to other companies. Google, Toyota and Mercedes-Benz have a lot of money invested in Tesla.
The first video below has reasons why you should not buy Tesla stock and even short the stock.