Tesla Motors Inc (TSLA): This Company is Moving in the Right Direction

The dynamics of the mass market are however fundamentally different, and there is a huge concern that big wigs like Chrysler, Ford Motor Company (NYSE: F), and General Motors Company (NYSE: GM) will crush Tesla.

Chrysler, which is no longer publicly traded, was the only domestic automaker which gained market share in 2012. To add to this, its auto sales edged up 5% in March, signaling the third full-year of year over year sales growth in every month. The same story of sales gain was also witnessed at Ford and General Motors.

In March, the General Motors Company (NYSE: GM) posted its best sales since 2007, as sales increased 6% to 245,950 units. Ford Motor Company (NYSE: F)’s sales also rose 6% to 236,160 units, marking the best sales since May 2007. Although the industry hasn’t gotten back to pre-recession levels, I believe that the impetus behind this rally will drive sales even higher in the future.

Ford Motor Company (NYSE: F) and General Motors Company (NYSE: GM) have also jumped onto the tech bandwagon, particularly ‘smart’ technology. Instead of developing their own in-house software for their cars, they have turned to the experts. At the CES held earlier in the year, they made it clear that it was their intention to create a technological ecosystem around their cars.

Both the automakers, though separately, have plans of inviting app developers for their cars. These apps are aimed at improving functionality, user experience, and safety. In my opinion, this move could greatly improve sales moving forward.

In light of what seems to be cutthroat competition, why do I argue that there is a huge leeway for Tesla?

I believe that the uptrend in U.S. automobile sales will eventually saturate the market with conventional automobiles. Considering the strain that this will put on the energy sector, I foresee a lot of government and eco-warrior led campaigns against conventional cars. In addition, the glut in the market will push consumers to look for something new, something energy efficient, and more importantly, something futuristic.

Given that Tesla is striving to identify itself as the car maker of the future, it will gain immensely once the market reaches this point. The stock is a good long-term play, especially now that it has poked its head above the all important break-even point.

Lennox Yieke has no position in any stocks mentioned. The Motley Fool recommends Ford, General Motors, and Tesla Motors . The Motley Fool owns shares of Ford and Tesla Motors .