Tesla Motors Inc (TSLA): Firm Predicting $200 a Share

Ford Motor Company (NYSE:F)’s $30,000 electric car, C-Max Energi, was widely considered to be the only “non old school” car that can stack up to Tesla. But so far in 2013, the fight is a no challenge win for Tesla Motors Inc (NASDAQ:TSLA). In January, the C-Max Energi sold 338 units, while the Focus Electric sold 81 units. All this compared to an estimated 1,200-1,600 Tesla units sold during the same time period. The results clearly demonstrate that Tesla is winning the head to head battle against Ford Motor Company (NYSE:F) despite their cars having a much higher sales price.

My take

General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) hold an advantage by already having in place an established global presence and logistics network. General Motors and Ford Motor Company (NYSE:F) are both currently trading near 52-week highs and are heavily focused on dominating the soon to be most important market in the world, China.

Meanwhile, Tesla is heavily focused on dominating the electric vehicle segment. Suffice to say, the market is large enough for everyone to survive, and an investment in either General Motors and Ford Motor Company (NYSE:F) can also provide lucrative returns based on the successful turnaround in the auto industry and revamped product line.

A $200 stock price will bring Tesla’s valuation up from its current $6.15 billion to around $30 billion, making the automaker slightly smaller than GM’s market cap, which is hovering around $40 billion. It is difficult to give a company like Tesla a price estimate, given the fact that traditional metrics are not sufficient in evaluating the company’s potential. $200 a share can be realistic in five years and investors waiting on the sidelines for additional confirmation of the company’s potential will likely miss out on the party.

The article Will Tesla Grow 5-Fold in 5 Years? originally appeared on Fool.com is written by Jayson Derrick.

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