Tesla Motors: Buy?

| About: Tesla Motors (TSLA)

If you read about Tesla (NASDAQ:TSLA), it sounds like they are selling more than just a car. They are selling an image. A no compromise electric car at prices competitive with other gas guzzling luxury cars. A car designed and made in America.

So far they have kept up with their timelines too. The Model S seems to be on track for on time delivery. People plonked down 40 million dollars in one day to reserve the model X, a car they might get in two years if everything goes as planned. At $4000/pop to reserve, that is 10,000 people. I could understand that if the model S was already on the road in the hands of people who reserved them. But there are none of those out there yet.

Tesla results were "mixed" (beat on revenue, missed on losses) but the stock is up, thanks to model X reservations, their new deal with Diamler, progress on all their other projects and guidance for 2012.

In my opinion, TSLA is good bet. I call it the future Apple (NASDAQ:AAPL) of the car industry. Their stock performance since I acquired Tesla stock has been neck and neck. Tesla has a long way to go and it is making good progress towards that goal. If the model S launch goes as planned, I expect the stock to double by the end of the year.

As an interesing side note, reading the Tesla report was interesting to me as a software developer because they called their current batch "beta" cars and plan on a next batch of "release candidate" cars. I dont know if those terms are used in the auto industry commonly but that sounded a lot like software.

Disclosure: I am long TSLA, AAPL.

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