First and foremost, I am a car guy. It would be staunchly inaccurate to think of me as any sort of environmental activist. I prefer Dunkin' Donuts (NASDAQ:DNKN) coffee to StarBucks (SBUX), action movies with gigantic emission generating explosions to documentaries on endangered Sea Urchants, and my preferred mode of transportation burns more fuel than the Royal Caribbean (NYSE:RCL) Oasis of the Seas. For all of these reasons I feel ashamed at the lust I feel every time I see a Tesla Model S on the road. The fact is, Mr. Musk hasn't just created a car for those who prefer Captain Planet to Iron Man. No sir, this is a car that enthusiasts actually want to drive. A factor lost on GM's Chevrolet Volt and the Nissan Leaf.
As far as performance sedans go, BMW's M division has set the bar awfully high with the M5. The Bavarian beast can romp from zero to sixty in a tire melting 4.4 seconds. For a car that weighs roughly the same as New Jersey Governor Chris Christy, this is truly impressive. In fact, all of the performance metrics on the Beemer are astounding. I'm amazed to learn the Tesla doesn't just fall in line with that remarkable performance, it savagely destroys the German.
DragTimes has reportedly recorded a zero to sixty time of 3.9 seconds (www.dragtimes.com/blog/tesla-model-s-per...-car) in the Model S Performance. For those of you who may be reading this while sipping a macchiato with distressed look of bewilderment, this is in fact the same as your Ferrari California. Now walk out of StarBucks, get into your Ferrari, and drive it off a bridge because this car costs only $100,000 with every conceivable option. The fully equipped BMW will set you back a cool $118,000, although you will be able to appreciate your walnut accentuated dash after the Tesla's tail lights long have vanished. The madness doesn't even stop there. The electric powerhouse propels the four door sedan through the quarter mile faster than a 6.2L V8 powered Corvette.
Recently, I'd read an article regarding the absurd level of depreciation on high end cars. It's possible to locate and purchase the aforementioned BMW for a meager $109,000 if you can see fit to excuse the 2,600 miles on the odometer(cgi.ebay.com/ebaymotors/2013-BMW-F10-M5-...;hash=item2a28ad41c5). Economic times are certainly getting better but saving nearly ten grand off a car is an easy decision. Furthermore, there are no shortage of second hand 2013 BMW M5's either. This is largely due to the inevitable threat of divorce as soon as a man arrives home in a shiny new six figure sports sedan. He is then forced to choose between his wife, and his true love. Unfortunately, most men choose incorrectly.
It's reasonable to assume then that many men would face the same woes when taking delivery of a Tesla Model S. This is also incorrect. This could be because the production numbers have only began to ramp up recently or perhaps because every owner also has a very luxurious dog house in his back yard to share with the family pet. Even worse, maybe it's because the second hand market is terrible for new technology and owners cannot bare to face massive instant depreciation head on. While I can't discount my first two suggestions, it most certainly isn't the latter. After combing through Auto Trader, Auto Shopper, Craigslist, and eBay I've found one pre-owned Model S. It's for sale for only a twenty five thousand dollar mark up from MSRP (cgi.ebay.com/ebaymotors/Tesla-S-Model-85...;hash=item2ec60a1eb3). The original MSRP was around $90,000. The dealer is expecting to sell this $115,000. The listing claims that this is but one of two available in the world. Since we all know that everything you read on the internet must be true...
There are already numerous articles on Seeking Alpha regarding the financial statements of the company, so I won't bother regurgitating that information. Besides, Tesla is expected to report tomorrow after the bell making previous data antiquated news, anyway. Tomorrow's guidance will provide us with a better financial picture of what the year to come will bring. I can say that I'd never seen one of these in person until Thursday, and since then I've seen three. While it could be a coincidence, I'm liable to think that the company is likely well on its way to delivering the highest volume of cars to date in Q1.
Even if you're not completely convinced that a company that burns cash to keep warm at night can survive through the year, buying the TSLA stock isn't your only option to make money from this company. Buy the car, then sell it on eBay. Though with over 13,000 reservations in front of you, it may not be as easy as eating the depreciation on the BMW.