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

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

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!