Love the Car, not the Stock

By Buck Hartzell – Feb 22, 2013 at 3:30PM

NASDAQ: TSLA

Tesla

Market Cap

$477B

Today's Change

(-0.69%) -$1.03

Current Price

$148.90

Price as of April 19, 2024, 1:04 p.m. ET

Here's a simple test to assess whether a hot new technology is going to succeed, or whether it's a rock-star company that doesn't pass muster.

Here are two questions to ask when presented with a hot new tech stock with designs to solve the world's problems. First, is this technology really going to be the answer? Second, is this company going to be the one to provide the technology? When it comes to electric cars, investors better hope we're grading on a curve.

Buck Hartzell has no position in any stocks mentioned. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.