Why Tesla Is Still a Winner

So much for occupying the pole position. Tesla Motors (NASDAQ: TSLA  ) paid the price for helping pioneer the mass market for electric cars when higher costs forced the company to come $0.12 short of fourth quarter estimates. The stock promptly fell 10% on the news.

Is the selloff deserved? Can investors safely bet on Tesla for the long term? The Motley Fool's Alison Southwick asks Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova for his perspective in the following video. Please watch, and then leave a comment to let us know what you think.

Still unsure whether the stock is a buy? The Motley Fool just released its most in-depth Tesla research available for smart investors like you. Thousands have already claimed their own premium ticker coverage, and you can gain instant access to your own by clicking here now.


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Comments from our Foolish Readers

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  • Report this Comment On February 26, 2013, at 5:48 AM, Pixma25 wrote:

    Tesla will continue to do well for years to come. The NYT article was not about weakness in the design, as was demonstrated by those who recreated the same test drive. It was about something being new and different. The Time's writer failing to use the Tesla properly reminds me of my mom attempting to use the computer. She can do it, but she often has trouble to perform a task as simple as checking email because everything about it is foreign to her. Just ask a computer customer service rep, the first thing they have to ask is, "Check to make sure it's plugged in."

    I'd like to point out what I consider a weakness in the design that will challenge the company at some point. It's this, the same technology that makes Tesla able to update changes to the car remotely will be hacked one day, with potentially deadly consequences. If a hacker is able to do something as specific as say, cause the brakes to fail at high speed, we may see the first instance of a competing company being accused of murder for having employed a hacker to attack Tesla.

    A strength that I haven't heard pointed out is association with Space X. Since Elon Musk is CEO of both companies, we can expect them to share patent technology. Space exploration has given us advances worth billions to industry and Space X can be expected to do the same. Relevant previous examples are Goodyear using a stronger than steel material from Viking lander parachutes in their tires and also NASA's structural analysis program being used to make school buses safer and more fuel efficient. In the future, many such advances will be owned by Space X and shared with Tesla, giving them a huge technological advantage over the competition.

  • Report this Comment On March 01, 2013, at 8:32 PM, dividendgrowth wrote:

    I think the overarching concern for investors now is a looming secondary offering.

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