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

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

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!