That was a 70% spike from Q1, and sent the share price soaring. However, much of that cash came via special leasing agreements Tesla arranged between itself, its customers, and certain lenders. Tesla was able pocket all of that borrowed cash and report it as earnings, a practice that conflicts with GAAP. Without including that revenue source, the company would have lost almost $30 million over the same period of time.
This doesn’t mean Tesla is doomed, or even a particularly bad investment. Many have said that its meteoric rise makes it something of a cult-stock. And with increased competition from Nissan, which offers cheaper electric cars and has even started selling off extra green car credits on its own, you get a much more competitive environment for Tesla. As of early August, the company would have to be selling over 400,000 cars a year by 2025 to justify its current share price. And while that number might seem like a lot, remember that General Motors Company (NYSE:GM) sold close to that number (275,000) this month. Most Americans can’t afford luxury cars, which means Tesla’s vehicles will have to get much, much cheaper if it is to compete with the industry giants. However, unlike Ford Motor Company (NYSE:F) or General Motors Company (NYSE:GM), Tesla’s main product – its super-batteries – have a world of applications outside the auto industry.
Maybe that’s what all the fuss is about.
Can established automakers beat Tesla in the race to provide affordable electric cars? Use the interactive list below to begin your own analysis.
1. Ford Motor Co. (F, Earnings, Analysts, Financials): Develops, manufactures, distributes, and services vehicles and parts worldwide. Market cap at $64.27B, most recent closing price at $16.34.
2. General Motors Company (GM, Earnings, Analysts, Financials): Operates as a global automaker. Market cap at $46.98B, most recent closing price at $34.14.
3. Tesla Motors, Inc. (TSLA, Earnings, Analysts, Financials): Designs, develops, manufactures, and sells electric vehicles and advanced electric vehicle powertrain components. Market cap at $19.97B, most recent closing price at $168.94.
(List compiled by James Dennin. All data sourced from Finviz.)
Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
- Compare analyst ratings for the companies mentioned
- Compare analyst ratings to annual returns for stocks mentioned
- Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, Filings
- Ford Motor Co. (F, Chart, Download SEC Filings)
- General Motors Company (GM, Chart, Download SEC Filings)
- Tesla Motors, Inc. (TSLA, Chart, Download SEC Filings)
ABOUT US
© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.
Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.
Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC.
Securities products and services are offered by Kapitall Generation, LLC – a FINRA/SIPC member.
