Video: Motley Fool Outlines 3 Things to Watch For From Tesla Motors to Gauge Automaker’s Success


Recently, Tesla stocks shot to a record high of $53 per share, they’ve since settled down a bit at $50, but still that’s a far cry from the $17 per share price when Tesla went public back in June of 2012, so is it now time to invest in the no-longer-a-startup automaker?

Tesla Motors Logo

Tesla Motors Logo

Honestly, we aren’t the investor types, but it seems Tesla Motors is now capable of success and it share prices seem to show that, considering that this year alone TSLA stock is nearly double the price it was in 2012.

Are the years of Tesla blowing through millions now in the past?  Is Tesla’s slight profit for the first time ever something that should convince us that the automaker is here to stay?

Motley Fool presents its answer to those questions and more in this video titled “Tesla Motors: 3 Things to Watch.” It’s not so much the investor viewpoint we’re interested in, but rather the guidelines by which we can judge whether or not Tesla Motors remains on the path to success

via Motley Fool

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7 Comments on "Video: Motley Fool Outlines 3 Things to Watch For From Tesla Motors to Gauge Automaker’s Success"

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I have also worried that once they fill the initial demand, they might run out of orders. Nissan had the same thing happen to them with the Leaf. At first, they couldn’t make enough to fill all of the reservations. But once they got them all filled, demand dropped sharply.

The three points he states are real, if not obvious, and I agree. The one thing I cannot understand is his examples of competition in the premium EV space, Honda and Ford? Honda flat out doesn’t believe in electric drive. Ford is using a very cautious approach to EVs and Lincoln is not even at the top of the luxury segment.

He mentioned Mercedes, Lexus (Toyota), and BMW as the owners they need to sell. Wouldn’t those companies be the first ones to fight back?

I also thought that his choice of Ford, and Honda in particular was odd. Ford has repeatedly said that they can and will scale up quickly if there is a market. Honda has next to no interest in the pure electric market.

BMW is the only one of those three that has a serious EV program. I would watch their response first.

But Tesla’s premise is that these automakers are limited by bureaucracy in their ability to adapt quickly. This might Tesla’s competitive advantage and saving grace.

I am impressed Tesla has come this far. The next few years will be interesting.

In order of importance I see:
1. BMW is a luxury maker that is taking on EVs in a serious way. I see a full lineup of EVs from them after the i3 and i8 come out (i4,i5,i6?)
2. Infiniti will be using the Leaf platform for the LE – whether they up it to 36-40kWh will be a major factor. This is closest to the Model S, but definitely a class smaller.
3. Mercedes is using Tesla for help. Whether they do more than the B class is to be seen.
4. Cadillac will be using Volt technology for the ELR which may be Model S priced, but a different market (coupe/range extender). No other models on the horizon.
5. Audi is on again off again in their commitments.
6. Lexus is looking just at hybrids (HSD) for now.
7. Lincoln is looking like they are mostly hybrids and maybe PHEV.

“What Tesla’s doing is a sophisticated package, but its not rocket science”

No, that’s Elon’s other company. 😉

As far as the order book drying up, I don’t see that as a big problem, because they want to fill the pipeline after that with the Model X. If they reach a point of selling 10,000 Model S units and 8,000 Model X units per year they will still be profitable (I believe Elon said they only really need to sell 8K S units/yr to break even). I don’t think it would be difficult for Tesla to book 15-20K orders per year, as long as they continue to lead in the space in both technology and style, which I see them being able to do for a while.

They will just open new dealer centers. Asia is fully uncovered, Europe only partially. It’s markets too

Actually, it WAS rocket science. In particular, the Model S is one of the, if not the, most aerodynamic production cars going. And it was due to SpaceX that it became that way. Likewise, they went with the skateboard/frame/body, rather than going with the unibodies that the rest want. In addition, the reason for Aluminum is because of the work that they were doing with SpaceX. IOW, he had LOADS of expertise at it. Now, as time goes by, the fear is that orders will settle down. But I seriously doubt it. The reason is that as orders keep coming, the prices are going to come down due to lower production costs on the batteries and more of the overhead being spread around. BUT, another big one is that there are LOADS of ppl with fear of electric cars. Tesla is slowly blowing the doors off on this fear and it will come back to help them continue selling even more. Finally, the one thing that few realize is that this car really was designed with rocket science. And one of these was the ability to handle crashes. NHSTA and others are testing the cars for crash worthiness. I suspect… Read more »