Forget the Rally: Tesla Is a Buy Right Now

Tesla Motors (NASDAQ: TSLA  ) has enjoyed a strong year so far. The stock has more than doubled the return of the S&P 500 year to date, up more than 24% as of this writing.

A single-day spike gets most of the credit for the rally. Investors snapped up shares shortly after CEO Elon Musk and team revealed that Tesla would book a surprise profit after delivering 4,750 Model S cars in the first quarter, 250 more than expected.

Is there still time to buy? In the following interview with The Motley Fool's Erin Miller, Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova says short sellers continue to press the stock despite recent production gains and increasingly lucrative partnership deals with Mercedes-Benz and Toyota Motor (NYSE: TM  ) . He thinks they're wrong.

Please watch this short video to get Tim's full take, and then leave a comment to let us know whether you'd buy, sell, or short Tesla's stock now, and why.

Near-faultless execution has led Tesla Motors to the brink of success, but the road ahead remains a hard one. Despite progress, a looming question remains: Will Tesla be able to fend off its big-name competitors? The Motley Fool answers this question and more in our 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

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 11, 2013, at 11:43 AM, ffbj wrote:

    Well, Tsla looks like it is here to stay. Anyone who bought in since its ipo at $15 or up until very recently is a happy camper. On the other hand lets not get ahead of ourselves. Nice run-up but, the parties over, that train has left the station, that boat has sailed, insert favorite analogous aphorism here"".

    Then there is the question of customer base. I think we are safe here with expansion word-wide, but eventually saturation will set in, in that most who want a Tsla Model S, and can afford one, will have one, or it will be on order. So then you go to the Model X, which is your crossover, everything vehicle, 'Homer Mobile'. Looks cool but its been pushed back, production wise to 2014. Additionally some of the big boys are now petal to the metal in regards to developing their own electric vehicles, which may cut into Tsla's bottom line. Its commendable of Musk, imo, that he has shown, by his words and actions that he believes in and is an evangelist for the electric revolution in transportation, even going so far as to aid potential competitors; evidenced by Tsla's work with Toyota, Bwm, and Mercedes.

    Bottom line: maybe buy some for a ride to $60 a share if everything goes well. Or buy into Scty, Solar City, 'Midas' Musk's solar panel rental utility, for something that has a ways to run.

  • Report this Comment On April 12, 2013, at 12:43 AM, TurbulentTime wrote:

    Tesla is not only luxury car company, it will also have mass-production (most likely separately nameplated) e-vehicles as we all known from Musk.

    Tesla is not only an automaker, it will run a mass global network of super-charging stations. Imagine the market caps of BP, Shell, 76, Chervon, going to be part of the future market cap of Tesla.

    I have trusted in Apple to revolutionize song and video markets, I now trust Musk's ability and vision in revolutionizing car and re-charging markets.

  • Report this Comment On April 12, 2013, at 3:37 PM, Milo2003 wrote:

    This is a sure win for me. Anyone who has done their own market research would know there is a huge demand for these vehicles. Walk into any tesla store and you will find countless people drooling over these cars and continually asking, when does the cross-over come out? Ive even Watched a fee offer cash for the ones in the show room so they wouldn't have to wait, I doubt youll ever see that at a dealership.This is how I've personally learned of tesla, it was years ago I heard about the roadster, but seeing the model S in persons and the reactions it was receiveing last July made me rush home and review their financials. Perfect timing for me, as This was around the time they were able to obtain 400 cars per week. Some simple math later and it was obvious to me that Q1 would not only be profitable but they should beat expectations as they became more efficient. Over the past months ive been loading up on stocks And options and have been enjoying te lows as I have been more than happy to dip into other assets to buy more at what had been proving to be a great price. I'm excited to see just how profitable "fully profitable" means!

  • Report this Comment On April 12, 2013, at 4:26 PM, alexrodz83 wrote:

    Additionally, let's not forget the untapped European and Asian markets that are in Tesla's sights.

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