Seeking Alpha

Shares of Tesla Motors (TSLA) are off 2.9% premarket with a cover story in Barron's (I, II)...

Shares of Tesla Motors (TSLA) are off 2.9% premarket with a cover story in Barron's (I, II) firing up passionate reactions from both TSLA longs and shorts. The action is relatively minor considering the dizzying +200% YTD run in Tesla shares and the strong slap from a publication that is known as a Monday stock mover.
From other sites
Comments (20)
  • Agnes59
    , contributor
    Comments (435) | Send Message
     
    This is the kind of opportunities shorts are looking for, for the stocks to come down. By June 20th announcement, I believe its going to be a different ballgame.
    10 Jun 2013, 08:54 AM Reply Like
  • Speed Machine
    , contributor
    Comments (12) | Send Message
     
    Manipulation at it's best. Absolutely no new information in the article. Just motivation for shorts to hop in. Historically, it has not ended well for the shorts chasing a Barron's story. Not that I believe everything I read, but I just read that 3/3 times Barron's wrote a negative piece on Tesla, the stock ended the day with 1%-2% gains. May be a good opportunity to grab a couple calls early in the day.
    10 Jun 2013, 09:01 AM Reply Like
  • Esekla
    , contributor
    Comments (3945) | Send Message
     
    I agree with the manipulation part, but this is the first time the short rebate has held steady after a precipitous decline. The short squeeze is not quite over yet, and the new short interest published tomorrow should be illuminating:
    http://seekingalpha.co...
    10 Jun 2013, 09:19 AM Reply Like
  • bd4uandu
    , contributor
    Comments (1808) | Send Message
     
    Unemployment is high, food stamp usage is at or near records, interest rate rising, let's face it it's not a vibrant economy. Is it time to invest in a low volume company that makes status symbols for the wealthy. Purchases are dependent on tax breaks for purchases and running costs of the vehicle. Tax breaks are given with borrowed money that is monetized with no way or intention to repay. States are looking at added taxes for EV's making them even less competitive cost wise. No thank you there are better investments. Watch out when the momo ends. If long good luck but watch your back.
    10 Jun 2013, 09:02 AM Reply Like
  • Dan Fichana
    , contributor
    Comments (1917) | Send Message
     
    Its amazing how off the barrons reporter can be and not understand the basic concepts of technological improvement.
    I guess LCD tvs were only for rich people too, since 10 yrs ago they were $800 of the small ones, like less than 24 inches.

     

    Im also amazed people blindly follow the advice of these reporters, take a econ 101 class, they'll tell you how wrong the barrons article actually is.

     

    Battery prices easily could come down, if not Tesla could always use cheaper batteries. Problem solved, no big issue about it.
    Amazed the reporter couldnt do a tad bit of battery research or anything to back up his statements about Tesla not being able to make batteries for that price.
    10 Jun 2013, 09:46 AM Reply Like
  • bd4uandu
    , contributor
    Comments (1808) | Send Message
     
    Tell me please what are these cheaper batteries. I'd like to invest in them.
    LCD/LED TV's became popular when the price came affordable for the masses. There is a little difference between $800 and $80,000.
    10 Jun 2013, 09:58 AM Reply Like
  • Esekla
    , contributor
    Comments (3945) | Send Message
     
    "Battery prices easily could come down" - agreed it's quite possible

     

    "if not Tesla could always use cheaper batteries" - um no, if not Telsa is in real bind over the long term.
    10 Jun 2013, 09:59 AM Reply Like
  • John Bingham
    , contributor
    Comments (1238) | Send Message
     
    Dan,

     

    As I said in another post about the Barron's article, the cost of the battery will certainly come down even if the cost of the individual cells remains the same in real terms.

     

    Very simply, the energy content of each cell will increase year on year. The generally accepted value is only about 7% per annum, but there is now a very good incentive for the manufacturers to really push the envelope on energy density.

     

    So for the same battery power Tesla will need fewer cells per pack as the individual cell's energy increases.

     

    Fewer cells mean a smaller battery pack, which in turn gives a lower cost with no compromise on range or performance: the total energy is still the same. There will also be less work for the Battery Management computer to handle and this may lead to even better reliability than the already very high reliability of the Tesla battery pack.

     

    Win, win for Tesla!
    10 Jun 2013, 10:28 AM Reply Like
  • bd4uandu
    , contributor
    Comments (1808) | Send Message
     
    John,

     

    Is PPO a major player in this area? http://bit.ly/12fo995

     

    http://bit.ly/12foXuu

     

    http://www.celgard.com
    10 Jun 2013, 10:47 AM Reply Like
  • Dan Fichana
    , contributor
    Comments (1917) | Send Message
     
    Well,
    LMO made by a LG is cheaper, as is NCM, as is LiFePO4, made by B456 currently. The downside is that they are not as energy dense and do not have the longevity of the NCA tesla uses, BUT who cares if the car lasts 300,000 miles or a million miles?

     

    With the them you also take a little weight hit, but an extra 150 lbs really doesnt change the car that much.

     

    I think Tesla is banking on NCA coming down in price though or future more energy dense batteries making the NCA cheaper, but they have more than one out
    10 Jun 2013, 11:02 AM Reply Like
  • John Bingham
    , contributor
    Comments (1238) | Send Message
     
    Hi bd4uandu,

     

    I really don't know. From their literature I expect they do supply to some battery manufacturers, and as they are based in NC it would be primarily US manufacturers.

     

    But Panasonic (they are Tesla's suppliers) is such a large company with an extensive portfolio of their own battery developments that I expect they have developed their own proprietary separators and everything is manufactured in house.

     

    I think you would need to see PPP's customer list to be certain of where their separators go, so I'm afraid I can't offer any investment opinions. I only know that the Panasonic cells used by Tesla are the best to date!
    10 Jun 2013, 12:31 PM Reply Like
  • 123man
    , contributor
    Comments (1277) | Send Message
     
    "purchases are dependent on tax breaks" - wrong! - but the tax breaks are a nice additional perc IF YOU CAN USE THEM - you have to owe $7500 federal to take advantage of the credit - if you don't use it in the year of purchase, you lose it - I don't usually owe that much, bought anyway, best decision I have made recently -
    10 Jun 2013, 09:59 AM Reply Like
  • chickensevil
    , contributor
    Comments (742) | Send Message
     
    That comment right there shows that even the "average middle class" man can afford to buy this car. Just as a reference I paid well over 12k in taxes last year and I would barely consider myself able to "afford" a Tesla. Assuming Single with 0 dependents and no deductions I would estimate you made 50k or less last year, if you are married (1 dependant) you are looking at 85k max. combined income.

     

    I said this not to single you out, but point out that people are buying these cars even if they aren't "millionaires" as is the major assumption an claimed "target audience". To me, as an investor, this is huge because if they can hit that 35k market, I get the notion you will be seeing people who would normally only pay 15 to 20k for a car, finding a way to afford the 35k sticker price.
    10 Jun 2013, 02:12 PM Reply Like
  • uscpaul
    , contributor
    Comments (41) | Send Message
     
    It is 817 am on the west coast. By now, everyone who cares, knows about the Barrons article. The stock of Tesal is still in triple figures.
    10 Jun 2013, 11:16 AM Reply Like
  • Cassina Tarsia
    , contributor
    Comments (666) | Send Message
     
    You bet!
    10 Jun 2013, 12:39 PM Reply Like
  • slaughterer
    , contributor
    Comments (40) | Send Message
     
    TSLA market cap should be $16b. Good luck longs.
    10 Jun 2013, 02:42 PM Reply Like
  • bd4uandu
    , contributor
    Comments (1808) | Send Message
     
    Is your boy going to make triple digits today?
    10 Jun 2013, 02:45 PM Reply Like
  • chfp
    , contributor
    Comments (620) | Send Message
     
    didn't TSLA close a hair above 100?
    10 Jun 2013, 04:50 PM Reply Like
  • bd4uandu
    , contributor
    Comments (1808) | Send Message
     
    $99 in after hours trading.
    10 Jun 2013, 06:19 PM Reply Like
  • Jonas Weil
    , contributor
    Comments (15) | Send Message
     
    The "naysayers" will lose this one (big)! Tesla will develop or buy "THE" battery before 2016 and the "Supercharger Network" will
    provide the range extender footprint in the interim. Don't bet against
    Elon. Any bets that Space X won't tether with the space station?
    11 Jun 2013, 03:19 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs