Tesla Motors Inc (TSLA), TransDigm Group Incorporated (TDG): Stocks That Win by Playing a Different Game

Some traditional car dealers have tried to outlaw Tesla’s direct sales model. But this hasn’t stopped Tesla’s latest ‘Model S’ sedan from selling like hotcakes.

Things really started to happen for Tesla Motors Inc (NASDAQ:TSLA) last year, when its fourth-quarter production of 2,400 cars represented a 500% increase from the previous quarter. In the first quarter of 2013, production more than doubled to more than 5,000 vehicles, the company’s first profitable quarter. Forecast production for 2013 is now 21,000.

Musk’s role in creating PayPal, SolarCity, SpaceX, and Tesla have given him a deserved reputation as a high-achieving, business superstar.

Tesla Motors Inc (NASDAQ:TSLA)’s stock price has been on a tear, with analysts divided as to whether it can sustain its current valuation. It comes down to whether you believe Tesla will be a huge, disruptive force to the whole industry, or whether it will remain a niche, luxury player. Elon Musk is determined to build Tesla into a major force, and he is not a man you’d want to bet against, as many short sellers have found to their cost.

Tesla six-month share price. Source: Yahoo! Finance.

The Bottom Line

All three of these companies are achieving superior performance through unconventional strategies.

Investors looking for solid, market-beating performance from an established business should consider Markel. If you have an appetite for a little more risk, Transdigm’s highly leveraged approach will work your capital harder, with the occasional surprise of a juicy special dividend.

Want to change the world? Elon Musk’s game-changing strategy could disrupt and revolutionize the entire motor industry. By investing in Tesla Motors Inc (NASDAQ:TSLA), you could be a part of it and be richly rewarded at the same time. But don’t bet the farm. Just like another motoring adventure, this could be Monte Carlo or bust.

Ian Richards owns shares of Tesla Motors, TTransDigm Group Incorporated (NYSE:TDG), and Markel. The Motley Fool recommends Markel, Tesla Motors , and TransDigm Group. The Motley Fool owns shares of Markel and Tesla Motors. Ian is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article 3 Stocks That Win by Playing a Different Game originally appeared on Fool.com and is written by Ian Richards.

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