Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Tesla Motors Inc (TSLA) Trades at a Premium: Patrick Armstrong

Tesla Motors Inc (NASDAQ:TSLA) has been recently practically cross-examined in its deeds and intentions, most of which were related to their plan of building the Gigafactory. Patrick Armstrong, CIO of Plurimi Investment Managers, still thinks that the company hasn’t produced enough and that it sells at a premium, as he said on an interview at CNBC.

Tesla Motors Inc (NASDAQ:TSLA)

Now, Tesla Motors Inc (NASDAQ:TSLA) is blamed for the fact that it hasn’t got any real earnings, that is, no constant inventions are brought to the market.

“We own BMW and we own technology companies and Tesla’s got a market capitalization of about $40 billion,  BMW is €60 billion. I think you’re getting none of the technology that BMW has built up, I think Tesla, you’re paying a huge premium for their technology, because it doesn’t have any real earnings yet […],” said Patrick Armstrong.

Tesla Motors Inc (NASDAQ:TSLA) is currently selling at a price slightly greater than $277, almost at the global top of its valuation history. On the other side, BMW stock sells around $90 and seems to be in the range of a rebound after a drop in prices at the beginning of August. For the short term investors, it makes more sense to follow the procedure presented by Plurimi Investment Managers and short Tesla Motors Inc (NASDAQ:TSLA)’s stock. However, if long term interests are at stake, the proceedings are not quite as clear and it might be the case that the electric car company has more potential. Nevertheless, the sole event of time passing cannot help Tesla Motors Inc (NASDAQ:TSLA) as much as the team’s struggle towards innovation and progress, which should be seen quite soon.

Some other transactions pursued by Plurimi Investment Managers that might give you some ideas regarding investments are: a buy of Yahoo! Inc. (NASDAQ:YHOO) of 31% portfolio equity weighing and another one of 38% in BRF SA (ADR) (NYSE:BRFS). Tata Motors Limited (ADR) (NYSE:TTM), which represented 40% of the portfolio, was on the sell side of the deal.

Disclosure: none

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.