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Tesla Motors Inc (TSLA): Kiss of Death, or Another Bull Catalyst?

Tesla Motors Inc (NASDAQ:TSLA) has become the darling of the Street this year, as its stock price has nearly tripled just since the start of this year’s calendar. The Model S is generating a lot of buzz, if not a ton of sales, and CEO Elon Musk is continuing to tweet out his latest news that puts Tesla on the forefront of many minds when it comes to energy, alternative-fuel vehicles and the motor vehicle industry in general. (His tweets have generated headlines all their own.)

The CNBC Fast Money ladies and gentlemen spent part of a segment of their show recently (see it on the next page) discussing the rise of Tesla Motors Inc (NASDAQ:TSLA) and the recent accolade of its stock being added to the NASDAQ-100 Index. The Tesla Motors Inc (TSLA)talk surrounded, of course, the stock price of the company and the debate as to whether the company still has a bull run in it, or whether it is reaching its peak.

There is not a lot of bearish attitude with Tesla Motors Inc (NASDAQ:TSLA) among the group on the panel, but there was some caution due to the very high price-to-earnings ratio that the company is currently owning in that the company just made its first profit last quarter after 10 years of existence – and that was only because of government credits and offsets for the company making and selling electric cars.

But the stock has continued to move higher, and even a member of the panel admitting to buying a position in the stock even as it closed at $127 a share – nearly 300 percent higher than where it was in early January.

On the other side of the coin, a couple members of the panel still consider Tesla Motors Inc (NASDAQ:TSLA) a speculative play at this point, mainly because of “perception.” They were wary of the technicals including the P/E ratio, but they at least agreed that the stock might be worth a little dabble in the speculation pool for now, to wait and see if the technicals of the stock line up with the business.

Overall, there was no belief that the company or its stock had reached a peak yet, but there was definite uncertainty where the stock would finally go from here. That may seem to depend not only on the perception but also on financial results, with the latest quarterly report due out in the coming days.

What are your thoughts about Tesla Motors Inc (NASDAQ:TSLA)? Do you think the business model makes you a bull, or are you more in the speculative camp? Would you speculate at $108-$110? How do you think fund manager D E Shaw (see his full equity portfolio) sees the company at these prices? Give us your feedback in the comments section below.


See the full CNBC video on the next page:

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