Tesla Motors Inc (TSLA), Toyota Motor Corporation (ADR) (TM) or General Motors Company (GM)?

Page 1 of 2

Tesla Motors Inc (NASDAQ:TSLA) has been seeing increased popularity—and controversy—in 2013 as its direct-to-consumer online sales model, business model and structure have gained the approval of car-buyers and investors, including fund manager Ken Griffin; see his full equity portfolio.

Tesla Motors Inc (NASDAQ:TSLA)

In the first six months of this calendar year, Tesla Motors Inc (NASDAQ:TSLA)’s stock price has tripled, the company paid back a $450 million government loan nine years early, and after producing about 5,000 cars last year, Tesla Motors Inc (NASDAQ:TSLA) is on pace to surpass its 20,000-car goal this year.

What does this mean?

If you do the math, for a company to produce 20,000 cars to sell them in a single calendar year, that will take an average production of just shy of 400 cars per week. To be accurate, the full 52-week average is 384 cars per week. With that in mind, Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk commented that as the calendar passes the halfway point of the year, the company’s factory is now producing well north of 400 cars per week.

This is a far cry from the factory’s heyday, when it produced about 10,000 cars per week as a joint venture with General Motors Company (NYSE:GM) and Toyota Motor Corporation (ADR) (NYSE:TM) in the 1990s and early 2000s, but for a startup automotive company that offers a vehicle for $70,000, to have the opportunity to pass 20,000 vehicles produced in a year would be an obvious milestone.

What else did Musk say?

Musk went on to say that Tesla Motors Inc (NASDAQ:TSLA) should be able to produce 800 vehicles per week by late in 2014, which would be about the time that the company intends to roll out its Model X SUV, with a more compact version of the Model S and a compact SUV also in the pipeline over the next three years. “We going to have every kind of car you could possibly imagine,” Musk said. “If it moves, we’ll make it.”

He indicated that by the time a full line of vehicles hits the assembly line, the plant in Fremont, California would return to its pre-Tesla production level of 500,000 cars per year.

Musk predicted Tesla Motors Inc (NASDAQ:TSLA) would sell 21,000 Model S vehicles this year, with Europe and Asia deliveries launching during the second half of the year.

What should investors do?

Clearly, rising vehicle production means that Tesla’s fundamentals are slowly catching up with its inordinately overvalued stock price. While investors would be foolish to sell on valuation alone, it’s still reassuring that production milestones are being exceeded.

Page 1 of 2
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

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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!