TSLA Three-Peat: Top Pick Again For 2015


Historical Tesla (TSLA) Chart (via Yahoo! Finance)

Historical Tesla (TSLA) Chart (via Yahoo! Finance)

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For 2015, Tesla Motors (TSLA) is once again the top pick for Dougherty & Co.’s analyst Andrea James. 2015 marks the third consecutive year that James selected TSLA as her top pick. James price target for TSLA is $325. Some highlights from James’ note on TSLA:

In 2014, the all-electric Model S remained among the best-selling sedans in its price category in North America, which is a testament to the disruptive potential of electric vehicle technology, a testament to Tesla’s five-to-ten year lead on integrating lithium ion batteries for automotive use, and a testament to Tesla’s innovative culture and to CEO Elon Musk’s leadership. The company achieved this best-selling status without an all-wheeldrive version available, without active safety features available, and without a leasing program. As of now, Tesla has introduced all three, which should keep demand strong. Over the course of 2015, we expect Tesla to see added operating leverage, to continue to vertically integrate vehicle manufacturing, and to begin selling the Model X crossover. We believe that Tesla will continue to generate shareholder value as it disrupts the auto industry. In 2013, Tesla shares opened at $35 and closed at $150, a 329% gain. In 2014, the stock traded from $150 in January to $219 as of this writing, a 46% gain…. We do not know of any other companies with a similar long-term growth profile. The stock’s recent decline (tied to oil prices) provides a compelling opportunity.

Source: Barron’s

Categories: Tesla

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9 Comments on "TSLA Three-Peat: Top Pick Again For 2015"

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agree 100%

Tesla stock is risky. That doesn’t mean bad. Many risky things are worth doing

Its valuation is 100% related to its ability to get the
Model 3 to market, and assumes that the 3 sells big

Tesla can do it. But a lot is riding on one product

Can the 3 live up to expectations?
Can Tesla keep the quality high and the price low enough?

Elon himself says that the success of Tesla will be measured not by its stock, and not even by its survival, but instead by the end result of EV adoption by the masses no matter who is selling the cars.

Profits are only important so that Tesla can push the ball forward.

Risky to invest in a company that doesn’t care about profit.

I’d invest in Tesla more as a social and environmental activist role as opposed to hoping for huge shareholder returns

For what it’s worth I admire Elon’s vision

Elon does not care about short term profits.

Long term profits are a natural byproduct of its primary goal,the electrification of the automobile.

Energy storage is also a significant source of future revenue potentially surpassing Gen III and auto revenue.

I am investing in TSLA for profit first and positive civilizational change second.

I would add does the Model III have competition from Nissan or GM when it comes to market? If it’s the only affordable EV on sale with a 200ish mile range it will sell in huge numbers, if there are 3 of them slicing up the pie not so much. Bottom line if Tesla wasn’t goading them we wouldn’t be where we are today, but that doesn’t make Tesla stock a safe investment.

Tesla and TSLA are two different beasts. We do a better job of covering the former here.

Best comment on here. Single biggest mistake it’s separating the genius of Tesla and Musk from the reality of TSLA, which must provide a competitive ROI to investors. When the disparity is finally realized more mainstream, then the stock will have a surprising value adjustment and “Tesla” well still be amazing.

Why did Tesla remove all the info on its Model X page? Was Tesla catching flack over the deceptive photo tricks it used in the pics of the Model X in the extra high ceiling garage with its extra tall doors?

I read that they were doing an update on the page with new photos prior to a rumored reveal event, maybe sometime in February.

All stocks are a risk. Now certainly there are different levels of risk. Kraft is not so risky, for instance. According to modern portfolio theory, which has taken some hits recently, risk determines reward. Taking greater risk should equate to greater reward. At these prices I think the stock is fairly to slightly over-priced, though with the giga-factory, the Model X, and the Model III coming, eventually, it could warrant that $325 target. The fabulous short squeeze that vaulted the stock to remarkable highs will not occur again, though steady growth is still in the cards. It is not that they don’t care about the stock price, but rather that the stock price will take care of itself if the company does well. Also Tesla does not plan to issue more stock, which explains one reason why the stock is held so dear, and the mother of all short squeezes. If that last sentence does not make sense to you, I would just put my money in an index fund. I think Musk might own around 30%, which he says he will never sell, so that puts a floor underneath the stock. Many analysts, that are paid a bunch of… Read more »