Why Tesla Motors Inc (TSLA)’s “Bad” News Could Be a Buying Opportunity

An investment in Tesla today is an investment in its product pipeline for 2014 and beyond. The Model S is a proof of concept that will fuel more growth next year, when the Model X, a crossover SUV, comes online.

Wednesday night, the analyst community nearly uniformly agreed that the new “revolutionary” financing product would not increase demand for the Model S, and it will probably be proven more-or-less correct in 2013.

But in 2015, that will change.

Tesla is currently developing its first entry-level luxury vehicle, which will be priced to compete with a BMW 3 Series and Mercedes C class. Through the lens of the huge media coverage following Elon Musk’s first tweet, through to Wednesday’s chorus of disappointment, it is pretty clear to see that the public wants to buy this technology and this brand. In 2015, the masses will be able to afford it.

It always boils down to risk and reward

There is certainly risk in an investment in Tesla. Huge, entrenched competitors have piles of cash to throw at R&D to catch up to the Model S. Tesla’s flagship car may turn out to be unreliable and have unsustainable maintenance costs. The infrastructure to support electric vehicles and Tesla’s own “Superchargers” may become obselete before the product and technology reaches critical mass. And operationally, Tesla may not be able to sustainably keep manufacturing costs in line while still innovating and developing market-leading products.

But the risk is far outweighed by the potential reward. The concept has been proven, and the market is clearly paying attention. An investment today positions you to ride the wave of the Model S’ success in 2013, and also have a stake in future growth, once cheaper future models make the cost of buying a Tesla truly $500 a month.

The article Why Tesla’s “Bad” News Could Be a Buying Opportunity originally appeared on Fool.com and is written by Jay Jenkins.

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