What to Watch Ahead of Tesla Motors Inc (TSLA)’s Second-Quarter Earnings

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Speeding ahead
Investments are the key here, because Tesla Motors Inc (NASDAQ:TSLA) continues to invest in its future. From building out the Supercharger Network to launching operations in Europe and Asia, this is a big year for the company. Not to mention that at its current upstart size, Tesla is now cranking out at least 500 cars a week, according to a recent video from Bloomberg. Furthermore, I suspect the stock’s momentum will continue as its all-electric cars become more affordable with the rollout of the Model X, and later the Gen III. “Tesla makes the best product in an industry that makes $1.5 trillion in annual sales,” said Andrea James, an analyst for Dougherty & Co. This is a momentum stock with plenty of staying power.

As we approach Tesla’s second-quarter report, I plan to add to my position if the stock takes another dip. True, the severe spike in stock price has Tesla trading at an outrageous multiple. However, the reason the stock is always quick to bounce back is that there’s support from long-term shareholders who care less about valuation and more about the wild growth Tesla is succeeding.

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The article What to Watch Ahead of Tesla’s Second-Quarter Earnings originally appeared on Fool.com and is written by Tamara Rutter.

Fool contributor Tamara Rutter owns shares of Tesla Motors. The Motley Fool recommends and owns shares of Tesla Motors .

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