My Top 2 Stocks: Tesla Motors Inc (TSLA) and Target Corporation (TGT)

Page 1 of 2

Today, electric-car maker Tesla Motors Inc (NASDAQ:TSLA) and discount retailer Target Corporation (NYSE:TGT) are my two largest individual stock holdings. My positions in these stocks have grown over the years not because of stock splits, but rather because I’ve continued to put money behind them during dips in the stock prices. Until recently, Apple Inc. (NASDAQ:AAPL) was my largest holding by a long shot. However, we’ll get to that later. First, here’s a bit of history on when I made my initial investments in Tesla Motors Inc (NASDAQ:TSLA) and Target Corporation (NYSE:TGT), how they’ve performed since then, and how long I plan to hold them into the future.

Tesla Motors Inc (NASDAQ:TSLA)Taking the plunge
Tesla Motors won my attention after the company’s CEO Elon Musk came to speak at Fool headquarters in 2011. I had no prior knowledge of the business before meeting Musk, and honestly no intention of investing in an auto manufacturer — a start-up EV maker, nonetheless. What changed my mind? I believed Musk was a disruptive innovator, and that Tesla would shake up the auto industry like never before.

When I finally decided to buy shares of Tesla Motors Inc (NASDAQ:TSLA), it was one of the most shorted stocks on the Nasdaq. However, Musk’s company has passed many milestones since that time. In fact, it delivered its Model S sedan ahead of schedule, and later took home the academy award of autos when it’s zero-emissions vehicle won Motor Trend’s 2013 Car of the Year. Despite these achievements, the market’s lack of confidence in Tesla isn’t without merit.

This is because the Silicon Valley-based company is trying to find its way in an industry where economies of scale favor global giants such as Ford Motor Company (NYSE:F), Toyota Motor Corporation (ADR) (NYSE:TM), and General Motors Company (NYSE:GM). Then again, Tesla Motors Inc (NASDAQ:TSLA)’s CEO has an impressive track record of beating the odds. Musk was a co-founder of payments processor PayPal, which eBay Inc (NASDAQ:EBAY) later purchased for a cool $1.5 billion. Meanwhile, his other company, SpaceX, made history last year after launching the first commercial spacecraft to reach the International Space Station.

As long as Musk is driving Tesla, I am happy to be along for the ride. Musk vowed to create not only the best electric vehicle ever built, but also the best performance sedan in the marketplace — so far, he’s done just that. But that’s not all. With the help of ex-Apple executive George Blankenship, Tesla is hoping to change the way people shop for cars.

The company is opening mall stores to showcase its all-electric cars in high foot traffic areas around the world. This is disruptive in an industry in which traditional automakers rely on franchised dealerships for distribution. While the stock will likely remain volatile in the near term, I’m betting on Tesla’s future revenue potential as the driving force behind widespread EV adoption. Of course, this isn’t going to happen overnight, which is why I plan to be a Tesla shareholder for many more years to come.

Now let’s look at my second-largest holding: Target Corporation (NYSE:TGT).

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!