Tesla Motors Inc (TSLA): This Company’s Shareholders Are Living in Fantasyland!

Final thoughts on where Tesla goes from here

In my opinion, this is far from realistic anytime soon. Tesla Motors Inc (NASDAQ:TSLA) expects sales of the Model S to number about 21,000 this year. The Model X crossover should come close to matching the Model S’ sales numbers and the next-generation Tesla Roadster due out in 2014 should not contribute a large number to the company’s total. In my personal opinion, total vehicle sales of 50-70,000 annually are a much more reasonable goal over the next five years, and anything beyond that would require extreme technological advancements or ways to make the cars more affordable to the general public.

Having said all of that, Elon Musk is one of the most ambitious and optimistic CEO’s that I have ever had the pleasure of following, and he has pleasantly surprised me (several times) with his company’s progress so far. It is quite possible he’ll do it again, but probably not to the point where the current share price is warranted anytime in the next decade or so.

The article This Company’s Shareholders Are Living in Fantasyland! originally appeared on Fool.com and is written by Matthew Frankel.

Matthew Frankel has no position in any stocks mentioned. The Motley Fool recommends Ford and Tesla Motors. The Motley Fool owns shares of Ford and Tesla Motors. Matthew is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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