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  • TSLA- The Stock On Everyone's Mind 0 comments
    Sep 10, 2013 9:37 AM | about stocks: TSLA, F, GM, FSLR

    Tesla Motors, an inventive electric vehicle company, has captured the attention of investors, politicians, and the every-day trader across the globe, but why? What has provoked the massive intrigue in Tesla, seemingly just another soon-to-be environmental innovation failure?

    The Californian based company had humble beginnings in 2003, but despite some original doubts, the company's stock is currently experiencing a long deserved surge. Earlier this year, Tesla announced it had repaid its 435million dollar loan from the government. This expressed its determination to prevent association with previous government-loan failures.

    The company is also taking major steps to expand into the global market. "European deliveries will begin in summer 2013, and in other regions starting in 2014." Said the Tesla Motors website. They also presently have a small network of supercharge stations in Norway and an expanding number throughout the United States. Tesla Motors intends to expand into China as well, with a flagship show room in Beijing preparing to open. Unfortunately, they have encountered problems in China in respect to trademarks. Zhan Baosheng, a Chinese "trademark troll", has trademarked the name Tesla in both English and Chinese, possibly causing a delay on the extension into China. In spite of this small drawback, Tesla is determined to branch into China and continue its global expansion.

    Tesla turned profit for the first time this year in quarter one, possibly the result of sales of their zero-emission vehicle and greenhouse gas emission credits or due to their new emphasis on selling directly to the consumer. Either way, this burst of profit acted as the catalyst for the Tesla stock surge, beginning the stock's upward climb that continues today.

    Despite this, Tesla's revenue, about 1.3billion, shows stark contrast to the market value of 20billion. This is the primary concern for many investors. Is this surge only due to the hype of new technology or will Tesla become another Apple, continuing to produce new innovations and eventually bring in huge profits? Currently, the P/E Ratio is 812, providing evidence that the stock is over valued and it is not making a large enough profit for its supposed value. At the same time, many believe Tesla Motors will begin to turn over profit with time, and it is well worth their investment. Looking at their growth, 26.86-173.70, it's visible that many support this belief.

    Tesla is a company with enough potential to become another Apple, but will it be able to reach that point before stumbling and falling on its face? This question is one that is being debated throughout the US and the world. So what will you do? Comment below and let us know!

    Contact the authors!

    Alexander Araujo: Twitter: @araujo_alex_

    Ryan Levenson

    Themes: Green tech, Technology, Auto Stocks: TSLA, F, GM, FSLR
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