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Investing In Tesla (TSLA)?

June 24, 2013 | About:
Investing Caffeine

Intelligent Speculator

Today i was reading an article about Tesla and also heard from a friend who has done very well on his Tesla purchase. Then i watched this video which you can take a look at where the Tesla technology is displayed. There is no “next” Steve Jobs. He was unique in every way. However, if you believe that a big part of investing is finding strong leaders that will end up transforming entire industries and make their shareholders rich at the same time, then it seems very reasonable to ask if Elon Musk is the next leader of this century.


There Is One Problem

I usually invest based on fundamentals. Here are some of Tesla’s numbers:

Market Cap: $11.5B

P/E: N/A (company has been losing money every quarter)

But..revenues are increasing rapidly:


I find it hard to invest based on those numbers because what i’d be buying is this guy’s vision, the idea that he will end up building something beyond what we’d expect. In a way, this as speculative as it gets. I always look at the upside which is incredible here. The problem of course is that projects like the ones he is taking on usually fail so it’s fair to think that Tesla could simply be the next company that fails to transform the automobile market.

Do any of you own Tesla? Would you consider doing so?

Rating: 2.0/5 (10 votes)


LwC - 1 year ago
As the author of a recent Barron's article opined: Buy the car, not the company.
Wescileppi - 1 year ago

This is one to short. I will be purchasing puts. Take away the government aid and this company is out of business.
Batbeer2 premium member - 1 year ago

Tesla's achievements and his abilities as a showman demonstrating his seemingly miraculous inventions made him world-famous. Although he made a great deal of money from his patents, he spent a lot on numerous experiments. He lived for most of his life in a series of New York hotels although the end of his patent income and eventual bankruptcy led him to live in diminished circumstances.

Yup.... the company seems aptly named.
Thamesk premium member - 1 year ago
The car clearly is superior and a creditable job. But the new bmw and others are not far. High risk given single or two models. They have created an impressive brand, but really need to dream a lot for 2017 sales to justify th tock. Going past the early adopters will be challenging.
Kfh227 premium member - 1 year ago
Agree, this is a short if anything.

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