Tesla Motors Inc (TSLA) Investors are Paying for Industry Disruptive Factors: Paul Ingrassia

Tesla Motors Inc (NASDAQ:TSLA) has revolutionized the auto industry ever since its inception, the company’s quarterly results also show that it’s moving at breakneck speed when it comes to the future of electric cars, but the high price of Tesla Motors Inc (NASDAQ:TSLA)’s stocks has made some investors skeptical of its rise. Some even feel that Tesla Motors Inc (NASDAQ:TSLA)’s market cap should be half or lower than what it is now. The next big thing for Tesla Motors Inc (NASDAQ:TSLA) is its model 3, a ‘a mass market’ car that would be priced around $35,000, but it’s still 3 years for 2017, when it finally launches.

Tesla Motors Inc (NASDAQ:TSLA)

Paul Ingrassia from Reuters, spoke with CNBC on why he believes that Tesla Motors Inc (NASDAQ:TSLA)’s stock should be trading at one third of where it is trading now and the future of the alternative fuel auto industry.

“At the current valuations, this stock makes sense really only if you believe that in 2017 their new model 3 can revolutionize the car business by being the first car, reasonably priced $35,000 that gets 200 miles to a charge and so we are not going to really know until 2017 meanwhile any hiccup is going to hurt its stock,” Ingrassia said.

Ingrassia firmly believes that a lot has to go right for Tesla Motors Inc (NASDAQ:TSLA) to deliver the model 3 in 2017, without facing any serious problems, though he acknowledges that Tesla Motors Inc (NASDAQ:TSLA) has come really far than what many people expected and has kept its commitments in the past.

“Reuters making views, they did an item yesterday when the earnings came out and it was like, it was a very smart item. It basically said look, no matter what this company does it’s not going to escape the valuations of the auto industry and again they said it’s really based on current condition and everything. Instead of a $28 billion, it ought to be closer to a $9 billion market cap. So what really you are paying for, that price now is industry disruptive factor [...],” Ingrassia added.


Video Embed Size: 530 X 298 640 X 360

Disclosure: None

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!