May 30, 2013 Zachary Shahan
Tesla’s stock has been climbing strong, and I’m feeling mighty angry at myself, since I was planning to buy some a couple months ago… but never did. At the moment, Tesla’s stock price is over $104, and the good folks over at Venture Beat have noted that Tesla’s now worth about 25% of GM.
It’s interesting, actually, because Chrysalix President and CEO Wal van Lierop, while interviewed by Future360 TV a couple months ago, said that the US has three and a quarter automotive companies, if you count Tesla as one quarter.
From Venture Beat’s John Koetsier: “So now, with a market cap in excess of $12 billion, Tesla is worth almost a quarter of the venerable General Motors.” Here’s a graph of Tesla’s stock price since March 1:
There are a ton of reasons why Tesla’s stock has been surging. I ran down many of them in my Top 33 EV Stories Of 2013 (So Far) article, so I’ll just repost some of those below. But first, there’s one more big piece of news today. Tesla is holding a press conference later today in which CEO Elon Musk has said he will announce a tripling of Tesla Superchargers. That’s the rumor, at least. The Superchargers, which are solar powered, are free for use by Tesla owners. They charge your car relatively quickly, and their purpose is to make long-distance trips along the East and West Coast (and maybe soon in other regions) relatively easy for a Tesla owner. We’ll keep you posted.
Prior to today, from my Top 33 EV Stories article, these are some of the things that have resulted in Tesla’s stock surge:
6. Tesla Announces One Huge Improvement Or Milestone After Another.
Elon Musk, Tesla’s founder and CEO, seems to be genuinely intent on helping humans and helping humanity. He and the Tesla team have announced that they will cover everything that might happen to a Model S owner’s car… beyond a physical accident or
First off Tesla had a huge short interest and they were about to launch a new product the model S of which of course they were back ordered so bam off and running the stock did go. I know because I was long for those exact reasons.
My main thought is Tesla will slow down on orders when they get through their back log which probably won't be for a couple of quarters as they start to deliver in Europe and Asia. After that Tesla is competing with the likes of the 7 series, E class, higher end Jaguar etc. There just isn't that big of a market for cars priced that high. I bet every buyer of a Tesla has one of those cars I stated in their garage right now with the Tesla just an extra car. That crowd isn't very deep.
On the other hand the Model S is a very good looking car with good performance and handling characteristics. Production seems to going well with few problems coming up except ironically the 12 V battery in the car. LOL. The problem has been addressed from what I have heard. A few other minor problems but for a low volume production car on it's first run things are going well. Europe may end up a bigger market then the USA actually.
Only problem is valuation????? I just don't see that much growth coming up to justify the valuation at this time. In fact unless Tesla pulls out a $35-40k EV with a 250-300 miles of range the valuation will not hold up long then crash back to a real valuation. Many 14 P/E.
I'm not even gonna speculate on what Tesla's proper valuation should be.
For a company that has only sold 10,000 cars or so, it's hard to get too excited about them taking over the world.
It's pretty obvious much of that runup was short covering, with shorty being burned at the stake in a horrible squeeze (I love shorts in my stocks for this reason)
On the other hand, a company that can build the Best Car in the World on their second try might come up with other good ideas in the future. GM's been effing around with its VOLT for years and the Model S puts it to shame.
It's prettier. Faster. Smoother. Quieter. Roomier. Cooler. Smarter.
Seriously, WHY would anyone of means buy a VOLT anymore when they could buy a Model S? Long trips? Psssht. Tesla has that figured out.
Sentiment: Strong Sell
Hey persie, maybe Tesla will plunge back to $17 like GM did. Do you think it will?
1:14 - Persie! That's enough.
Sentiment: Strong Sell
Did Tesla reinvent the battery? That is the stumbling block of every electric car maker. How about this one , they get paid by the state of California 45k on every car sold (smog credits)....Huh?
Do I detect sour grapes?
Do you GM Moron Longs RESENT Tesla's smog credits?
If so, why don't YOU freaking morons build a car that gets smog credits?
Sentiment: Strong Sell
No that's not right they do get paid ZEV credits is some cases but it debatable if you can even consider that reoccurring income. Actually you don't get paid ZEV credits they are bought by other auto makers and sold by Tesla, whole government scheme with all that so do your DD.
California does not pay 45K on every Tesla.