Everything This CEO Touches Turns to Gold

When it comes to technological innovation one man comes immediately to mind: Tesla Motors (NASDAQ: TSLA  ) and SpaceX CEO, Elon Musk. The South African-born entrepreneur is revolutionizing industries in ways that others once considered impossible. Last year, Musk made history: after a successful launch of a SpaceX rocket, it docked with the International Space Station. However, privatizing space exploration is just the top of Musk's laundry list of achievements.

One of Musk's earlier achievements came in 2002 when eBay (NASDAQ: EBAY  ) coughed up a cool $1.5 billion to buy PayPal, an online payments system co-founded by Musk. In many ways, PayPal has saved the online auction giant. In fact, PayPal now boasts 128 million active registered accounts and has grown to span 193 markets.

While PayPal is part of Musk's rich track record of entrepreneurial successes, it's small-time compared to his current undertakings.

These days, the SpaceX brainchild is busy building a world-class car company from the ground up. Since production began on Tesla's all-electric car last year, the Model S has passed many milestones including being crowned Motor Trend's "2013 Car of the Year." Although, with a visionary CEO at the helm like Elon Musk investors should expect more upside from here.

In a bid to revolutionize the automotive industry, Musk is finding inventive ways to attract drivers to his all-electric Tesla Model S. In the past few months, Tesla has released a new financing plan, lobbied its disruptive retail strategy to legislators in various states, issued free service for all Tesla owners, unveiled a new "no-fault" battery warranty, and created a new loaner upgrade program that promises Model S owners the option to upgrade their vehicles for a discount cost.

What's in a name?
With so many forward-thinking initiatives on the table, I think Tesla's momentum will carry into the quarters to come. Shares of Tesla have climbed more than 57% year to date and should continue to climb ahead of the company's earnings announcement later this month. As you can see in the chart below, more established automakers such as Ford (NYSE: F  ) and General Motors (NYSE: GM  ) have posted year-to-date gains that are more modest.

TSLA Chart

TSLA data by YCharts

April auto sales at both Ford and GM clocked in at their highest levels in at least five years, according to CNN. Sales at Ford spiked 18% from the year-ago period, whereas GM reported an 11% increase in April sales. For more insight into Tesla's sales figures, we'll have to wait until May 8 when Musk fills in investors on the company's first-quarter financial results. Even so, Tesla owes its current success to its founder and CEO. Thanks to Musk's visionary leadership, Tesla has not only proven to be a viable business but also a disruptive innovator in the auto industry.

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.


Read/Post Comments (2) | Recommend This Article (7)

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 May 03, 2013, at 3:00 PM, ifool100 wrote:

    It really is astonishing what Mr. Musk has achieved. Almost all great innovations are ridiculed by the status quo, as folly. IMHO once America gets a real taste of electric - internal combustion will seem like steam punk. I think the genius of this CEO is understanding what we want, before we want it. Humm - brings to mind another late, great, CEO.

  • Report this Comment On May 03, 2013, at 5:18 PM, ffbj wrote:

    That's why I call him Midas Musk, as the article title implies, the mythological king, actually based on a real king. Although that story did not end so well, as he turned his own daughter to gold with his Midas touch.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2407160, ~/Articles/ArticleHandler.aspx, 12/22/2014 6:27:45 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement