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 below, 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 who will end up transforming entire industries and making 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?