Tesla Motors Inc (TSLA): With These Stats, How Is This Company a Buy?

Toyota Motor Corporation (ADR) (NYSE:TM) is also a formidable player in the electric vehicle market. Its Prius continues to increase its sales each month; in May, they totaled 678. So far this year, Toyota Motor Corporation (ADR) (NYSE:TM) sold about 3,600 Priuses. Of note, however is that the company sales this year have slowed and will likely be less than they were last year. According to InsideEvs.com, the number of the Prius units may not match the 12,750 it sold last year, which would make the plug-in Prius the first EV sold in the U.S. to lose sales year-over-year.

Then there’s General Motors Company (NYSE:GM), which builds the plug-in hybrid Chevrolet Volt. Its sales seem to be the weakest of the bunch. In May, about 1,600 of the cars were sold, which was a 4% decline from May of 2012. General Motors Company (NYSE:GM) is preparing for the release of the Chevrolet Spark EV this month, which would be its first new electric car in the U.S. since it rolled out the Volt in 2010.

One of the major advantages Ford, Toyota, and GM have over Tesla deals with the way Tesla sells its cars. Instead of selling them through a dealership, it sells them directly to consumers. This is against the rules and regulations of many states, which handicaps Tesla from being able to sell its cars in key markets. This includes Texas, where lawmakers did not take up a legal matter that would have allowed Tesla to sell there.

I’d buy Tesla now that its stock has sold off and is trading below that 52-week high it achieved when it was riding a wave of good news. Yes, its fundamentals have been dreadful, but the company is well-positioned for the near-term to provide some considerable shareholder value.

Tedra DeSue has no position in any stocks mentioned. The Motley Fool recommends Ford, General Motors, and Tesla Motors . The Motley Fool owns shares of Ford and Tesla Motors.

The article With These Stats, How Is This Company a Buy? originally appeared on Fool.com and is written by Tedra DeSue.

Tedra is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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