Video: Motley Fool Discusses Tesla’s Upcoming Affordable Gen III and Its Impact on TSLA Stock

4 years ago by Electric CarsTV 3

“Tesla Motors CEO Elon Musk has some ambitious aspirations for the electric-car maker. His aspiration for an affordable car, in particular, has received a lot of attention. Given the company’s execution thus far, it seems likely that Musk can deliver on the promise at some point in the future — but is this car already priced into the stock?”

 Fremont Assembly Facility Could Produce 500,000 Teslas Per Year

Fremont Assembly Facility Could Produce 500,000 Teslas Per Year

That’s the question that Motley Fool contributor, Daniel Sparks, sets out to answer in this video focused mainly on Tesla’s financials.

Of note, Tesla’s market cap is now over $20 billion and its stock price has eclipsed $170 on several occasions.

Is the market cap justified?

Sparks seems to think so, but there are some lofty goals that Tesla will have to meet in the near future.

Can Tesla do it?  A lot hinges on the affordable Gen III.  If promises there are met (200 miles of range, price tag around $35,000 and production into the hundreds of thousands), then Tesla’s future looks bright.

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3 responses to "Video: Motley Fool Discusses Tesla’s Upcoming Affordable Gen III and Its Impact on TSLA Stock"

  1. Dan Frederiksen says:

    Motley Fool are actually fools. I thought it was maybe a self deprecating name and they were really good but no, they are actually fools. Wrong more often than not. I’m not quite sure if it’s a kind of scam or not but never take advice from them.

  2. pjwood says:

    I wouldn’t hold against Motley Fool the jockeying of price over income potential, or P/E. That gets right down to unit sales and margins. The stock will always get a “tech” vs. “auto” multiple. The question is “what is that multiple?” and “what will income be?”. If holders aren’t somehow quantifying their expectations, they’re setting up to get burned.

    CA and CARB hold a lot of cards. ZEVs could be 200 million, or 0. At 200mm, with, say, 800mm of earnings in 2017, or 2018, they would have a sane multile of 20X (20bb / 1bb). Y(Multiples)MV

  3. Chris O says:

    Definitely huge expectations are already priced into the stock, if stock prices are indeed about economics rather than say, a combination of psychology, manipulation and greed.