Tesla Motors Inc (TSLA) Is A ‘Category Creator,’ Says Analyst

Page 1 of 2

To say that Tesla Motors Inc (NASDAQ:TSLA) has had a wonderful week would be an understatement. Heck, to say that shares of the electric vehicle Apple-wanna-be have had an amazing week would be doing the stock a disservice. Since Wednesday, Tesla shares are up over 38% on the back of a massive earnings and revenue beat, and as it was reported on Insider Monkey yesterday, “EPS came in at $0.12. The nine earnings estimates compiled by S&P Capital IQ averaged $0.04 per share.”

Tesla Motors Inc (TSLA) Gets Five-Star Rating: Should Ford Motor Company (F), Other Competitors Worry?

Equally as important, talk of a quick-charging supercharger service, literally the best score ever by Consumer Reports for its Model S, speculation over self-driving technology, anticipation of Tesla Motors Inc (NASDAQ:TSLA)’s Model X, thoughts of a lower-cost $30K electric car, and even reports of a 1,600km car have driven the bulls wild. As ridiculously high short ratio of 49.20% (as of April, 15th) may have helped shares move higher as well, due to a commonly known, but tough to pinpoint, phenomenon known as a “short squeeze.”

With all of that in mind, it’s still important to ask the question: how high can Tesla shares go? At their current trading price of $76.76, it’s difficult to quantify the stock’s massive move, but some firms have price targets more than twice this level. Some investors may be seeing the similarities with innovative tech titans like Google Inc (NASDAQ:GOOG) or Apple Inc. (NASDAQ:AAPL), but in comparison to its peers in the electric auto space, Tesla Motors Inc (NASDAQ:TSLA) may be even further along.

Still, some may think that the market might’ve gotten a bit “crazy” on the valuation side, according to a recent segment on CNBC’s Street Signs. One intriguing metric the program brought to the table was a pseudo-market cap per car expected to be sold multiple, that essentially valued Tesla Motors Inc (NASDAQ:TSLA) at around 17 times the value of Ford Motor Company (NYSE:F) and Toyota Motor Corporation (ADR) (NYSE:TM).

In addition, Ben Kallo of Robert W. Baird, says that Tesla is a “category creator,” mentioning that the stock can live up to its growth potential, adding that “when that brand’s been made, investors are willing to attribute value to that.” When asked of how it compared to Apple’s potential in the past, Kallo voices the Street’s primary bullish thesis behind Tesla: that there’s “room to grow with new models [...] the Model X, which is a crossover vehicle, then Gen 3 [...] which is going to be a consumer vehicle, down at the $30,000 level.”

Kallo’s price target on Tesla is $70 as of Thursday, which, as we see today, is below what shares are currently trading at. Still, it’s usually a mistake to bet against any stock that has the momentum like Tesla does at the moment, and shorting a stock for valuation concerns almost never works in one’s favor. Just ask anyone who tried to short Netflix, Inc. (NASDAQ:NFLX) earlier this year.

See the full CNBC video:

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
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 Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

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

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!