After a 300% Gain, Is Tesla Still a Buy?

In the following video, analyst Brendan Byrnes speaks with Fool contributor Andrew Tonner about Tesla and the electric-vehicle market as a whole. Tesla has done a great job executing lately, and its stock has absolutely been on fire over the past few months, rising over 300% year to date. 

The Model S has proved to be a phenomenal car, but longer term, Brendan thinks that a lot of the success of the company will depend on Tesla's success in tapping the mass market for electric vehicles with a vehicle under $40,000 or so. 

Ultimately, this is not a company that Brendan is betting against right now, but at a $15 billion market cap, there's just not enough margin of safety in this stock for him to jump in. See the video for more details.

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  • Report this Comment On August 03, 2013, at 10:57 AM, Grumpycat wrote:

    "After a 300% Gain, Is Tesla Still a Buy?"

    Maybe the car, definitely not the stock, unless one is buying a short position.

  • Report this Comment On August 03, 2013, at 12:55 PM, jamesdan567 wrote:

    Tesla stock is an excellent investment. The electric car market has just started, of the 1 billion cars on the road, virtually none are electric, and the Model S is 400% more efficient (95MPG EPA rated vs 22mpg) than its counterparts.

    The total market for cars is about $1.5 trillion per year. Tesla and its excellent management have barely scratched the surface.

    Exxon has reported 9 straight quarters of lower production of oil and gas. All 4 majors (BP,XOM, CVX, RDS-A) reported significant declines in production this quarter. Electricity is the best and lowest cost source of fuel for electric cars. ICE cars will disappear entirely by 2030 due to ever higher gasoline prices

  • Report this Comment On August 03, 2013, at 1:03 PM, jamesdan567 wrote:

    "margin of safety" is a cheap cliche. There is NEVER safety in owning equity securities of any kind, although telephone and utility stocks are less risky because they are monopolistic.

    Gigantic General Motors just recently came out of bankruptcy, an event that wiped out all shareholder money invested prior to the BK. No company can stand and say we can't go bankrupt. Kodak saw its business erode quickly as consumers adopted a new digital model. F and GM will go bankrupt if they do not go 100% into electric cars.

  • Report this Comment On August 03, 2013, at 6:53 PM, kankemike wrote:

    Bears are looking for a better entry. Once earnings bests this stock IMO is going to shot through the roof. In contrary, if the stock does drop in price, everyone is going to load up on the pullback. Long TSLA.

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