Tesla Is Still One of the Market’s Best Investment Opportunities

No doubt, Tesla Motors (NASDAQ: TSLA  ) has been one of the best investment opportunities of the past year. Profits and production are up, and the stock has tripled. Can it really get better? Does Tesla deserve to trade for more than $100 a share?

Sure, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following video. Tesla is still in the early stages of the second phase in a three-phase strategy to create a mass-market carmaker capable of competing with the likes of Ford and General Motors.

If CEO Elon Musk succeeds, today's $11 billion market cap will become a distant memory in 10-15 years. Instead, Tesla will rank near what Ford ($59 billion) and General Motors ($47 billion) command as of this writing. Not bad as far as investment opportunities go, right?

To get there, Tesla must disrupt the auto industry in much the same way that Apple disrupted rivals when the iPhone and iPad redefined how we think about computing. Plan to hold for a decade or more if you buy at current levels, Tim says.

Do you agree? Please watch the video to get Tim's specific take, and then let us know if you consider Tesla to be one of the market's best investment opportunities right now, and why.

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Read/Post Comments (10) | Recommend This Article (13)

Comments from our Foolish Readers

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  • Report this Comment On June 06, 2013, at 10:23 PM, CBofSTL wrote:

    I agree completely! Tesla is headed for greatness!

  • Report this Comment On June 06, 2013, at 10:49 PM, TheDarkestCorner wrote:

    All car buyers should want Tesla to succeed.

    Not only will their electric car help save our fossil fuels, but their business model is long overdue.

    They sell direct to the consumer. Imagine if all car makers did this. You'd no longer have the middle-man taking his share when you fork over cash for a vehicle. I think this would spur greater competition and lower car prices.

  • Report this Comment On June 07, 2013, at 2:10 AM, Petronilus wrote:

    There was a certain time where Apple was the brand that made me most proud of being American. Today it's Tesla.

    Today Tesla is selling the Model S ranked as the best car ever by Consumer Reports and having reached the highest sell-through of all luxury car models in the USA in Q1 2013. It's a true game-changer in making an EV car truly superior to gas cars on a range of parameters.

    There is no reason to think that EV cars wont start to gain significant market share in all classes over the next 5-10 years as battery costs go down and the supporting grid of charging stations go up. What we need now is that Detroit renews itself dramatically, ideally not copying Tesla, but creating aggressive disruptive value-adding innovation on their own. It must start at the very top.

    We need a lot more of companies like Tesla with visionary leadership and we can start fixing our insane debt.

  • Report this Comment On June 07, 2013, at 2:26 AM, jamesdan567 wrote:

    Elon Musk, chairman and largest owner of Tesla has stated publicly that the mission of Tesla is to put the global transportation business on a sustainable basis. That means the broad adoption of EV's worldwide and the near complete elimination of gas and diesel fuels as transport elements. He has declared war on all the major auto companies and all the major oil companies.

    Do you really think Elon Musk is shooting for $50 billion in market value in 10 years? Just achieve the market value of a DOG like GM? Come on...The man wants to put a permanent manned base on Mars.

    I'd say he's shooting for a $1 trillion market value in 10 years or less. But he'll never say it. We'll just have to watch and see how they execute.

  • Report this Comment On June 07, 2013, at 6:51 AM, mattstylez wrote:

    I already ordered a model S and I'm starting to see them in every affluent MSA in US. This means he succeeded at attracting the top.

  • Report this Comment On June 07, 2013, at 7:35 AM, Tooldev wrote:

    The market tesla is penetrating is by its nature very challenging. I believe tesla is an exemplary company, driven by good sound engineering and first principles. Drivers of tesla are enthusiasts, engineers inspire to work for this company, as an investor I am happy to accept the stock as emotional and volatile. I believe there may be other emotional investors like me, who will support tesla in the long run.

  • Report this Comment On June 07, 2013, at 9:13 AM, blando3 wrote:

    I think a possible scenario is that as Tesla's cars get cheaper, EVERYONE will own one. Remember Apple? Before the iPhone, everyone had a different phone, and none were exceptional. Then the iPhone came along and everyone bought one. I think Tesla is a real game changer in the car industry, similar to what Apple did for phones and personal electronics. Yes, the price point is far different, but almost everyone needs a car, right? Why not a Tesla (as they become less expensive)?

  • Report this Comment On June 07, 2013, at 9:54 AM, oldpratt wrote:

    I am intrigued by the company but to compare it to Apple is to say there are no cars on the road right now. I think the competition will be stiffer and Tesla can be ahead of the pack. I

  • Report this Comment On June 07, 2013, at 10:30 AM, Sam026 wrote:

    Wow! Talk about drinking the Kool Aid.

    The Auto biz is a tough business and the pure electric vehicle market is still very unknown as to its actual size and vehicle mix.

    The 100% electric vehicle is basically unproven as being "the only" vehicle in meeting the owner's needs especially in colder climates. The NY Times article may have been poorly written, etc. but the point of how cold weather takes a big bite out of the EV's range wasn't fabricated or disputed. Until the EV proves that it can handle all kinds of weather and driving conditions; projecting Tesla to the size of a Ford or GM is bordering on fantasy.

    Another point never discussed is how will Tesla grow (scale up) their production system and business model to the size of a Toyota or Ford; a task that has brought many a great start up company to its knees if not its destruction. It isn't easy to be big enough to make millions of anything as complicated as an automobile.

    Now let us assume that all the good things said about Tesla and EVs comes true. Do we honestly believe that the World's auto companies are going to yield their market share to the this one company without an epic battle and plenty of good honest margin shrinking competition? Note what Samsung, Microsoft and others have done to Apple's market capital.

  • Report this Comment On June 07, 2013, at 8:53 PM, Jackl1956 wrote:
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