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.


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