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Green Mountain Coffee Roasters Inc. (GMCR), Tesla Motors Inc (TSLA), First Solar, Inc. (FSLR): Who’s Winning The War?

Whither motoring momentum

Even as Tesla Motors Inc (NASDAQ:TSLA) has debuted the Model S to cheers from automotive magazines, Consumer Reports, and seemingly from everyone who’s taken a test ride, the company has a vocal jeering section.

On May 14 the company hit an all-time high of $97.12 only to sell off as low as $81.15. It could also have been a response to CEO Elon Musk’s tweet that a major announcement on their Supercharger technology would be postponed. Some also credited Fellow Fool Blake Bos’ article and video .

As Bos noted the company recently reported its first profit ever but growth was already baked in. On CNBC the bull argument was that Tesla Motors Inc (NASDAQ:TSLA) is in early stages of growth like Amazon.com, Inc. (NASDAQ:AMZN). Bear rebutted the average price point on Amazon was $10 for a purchase, not $50,000 making the addressable market exponentially smaller.

One risk to the stock is independent auto dealerships who feel if they can’t sell the Tesla Motors Inc (NASDAQ:TSLA) themselves then no one can. This is playing out now in Texas’ and North Carolina’s state capitols.

Musk has pleaded the case before state governments to sell direct to consumers and won. Whether North Carolina and Texas shut out Tesla and bow to pressure from auto dealers, residents can easily go out of state to buy what they want.

Retailers like Kroger and Walgreen are expanding the number of EV charging stations and putting paid to the charging range argument. Analysts predict a 39.7% five year growth rate and Morgan Stanley raised the price target on Tesla to $103.00.

Long term winners

Shorts may have to suffer further as these companies prove themselves winners. First Solar, Inc. (NASDAQ:FSLR)’s prospects are much brighter with the TetraSun buy and the P/E is low once again. I think Tesla Motors Inc (NASDAQ:TSLA) is a long term buy (on pullbacks) despite a 77 forward P/E. Green Mountain is still BFFs with Starbucks and that makes it a buy again. Don’t believe me…just look at the chart.



GMCR Total Return Price data by YCharts

The article Battleground Stocks Winning Their Wars originally appeared on Fool.com and is written by AnnaLisa Kraft.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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