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Shares of electric car maker Tesla Motors (TSLA -7.1%) sink after Capstone Investments initiates...

Shares of electric car maker Tesla Motors (TSLA -7.1%) sink after Capstone Investments initiates coverage with a sell rating and a $22 price target. Capstone notes that Tesla has only sold 1,400 cars since 2008 and that demand for electric vehicles may not materialize as fast as some investors hope.
Comments (4)
  • I wonder if the Tesla CEO will "respond" to this sell rating like Reed Hastings did.
    23 Dec 2010, 03:10 PM Reply Like
  • Elon Musk is a really smart guy doing a lot of smart things. Tesla is not just about the 1,400 vehicles it has sold, but about patents, a head start on the EV market, and technology that it is already leasing and partnering with larger automakers to promote (Daimler, Toyota, etc).

     

    They've also secured serious gov't funding to "pull forward" their development of their next product, I like Tesla a lot.
    23 Dec 2010, 03:18 PM Reply Like
  • Tesla isn't all about 1400 vehicles sold. Its also about massive hype over a pricey 3500lb enviro-status symbol. This vehicle is nowhere near ready to market to a mass market. If oil dried up tomorrow we'd spend a massive amount of money on a larger natural gas delivery system. There isn't any rational alternative in sight.
    23 Dec 2010, 04:37 PM Reply Like
  • The "Roadster" was never developed to be mass marketed. There is a lot of really uninformed commenting around this company.

     

    The strategy was and is, to start with a high end expensive vehicle where premiums are higher and could be used to help cover development costs, and as the tech matured and costs of production came down to slowly segway into more mass market vehicles. Their next product is intended to be a 4 door 4 passenger vehicle in the luxury end, at around $50,000.

     

    The intent was to generate interest and momentum in pure electrics and to create a cascade which would result in cheaper component prices. They have been arguably successful at their strategy to date and even though there is a gap in their production ability and the delivery of their next model, everything has so far gone to plan.

     

    It's easy to discount the value of what Tesla accomplished, but I'm a fan of its American ingenuity, American entrepreneurialism, at its best. I personally find it funny that the golden competitor, BYD, a big beneficiary of Buffett money, has neither developed competitive tech by any stretch nor has it delivered virtually any vehicles to the private market and continues to sputter into irrelevance (except for the massive subsidization by the central Chinese authority).
    23 Dec 2010, 10:25 PM Reply Like
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