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Tesla Motors Means Business, Conquers Norway

Within 24 hours, Tesla Motors (NASDAQ: TSLA  ) made these two tweets:

In other words, Tesla just went from zero to six Superchargers in Europe in one day. And according to another tweet, 6 Superchargers in Norway puts 90% of Norwegians within 320 km of a Supercharger station, "well within the Model S' 425 km range."

Supercharger coverage in Norway. Source: Tesla Motors official Twitter feed.

With 90% of Norwegians within range of a Supercharging station, the company exceeded the plan for 80% coverage that it laid out in the second quarter letter to shareholders.

Tesla said in its second quarter letter to shareholders that the company would begin its European expansion with deliveries to Norway, Switzerland, and the Netherlands.

"In Norway alone, we expect to deliver almost 800 vehicles this year based on current orders," the letter said.

A key point bears are missing
Though Tesla's stock boasts a dubiously lofty premium, this is still the wrong stock to short. If there's one aspect it seems like the bears are overlooking, it's Tesla's Superchargers expansion.

By 2015, the company plans for 98% of the U.S. population to have access to a Supercharging station.

Tesla Superchargers planned for 2015. Gray and red dots both indicate Supercharger stations. Source: Tesla Motors website.

And now investors are beginning to get a first glimpse of Tesla's ambitions for Supercharging stations in Europe -- and it's looking good.

Tesla is hedging its success with its aggressive Superchargers expansion by building out the infrastructure needed to support high volume production. And now with the company's aggressive expansion in Norway, investors can be even more confident in the its plan to expand its infrastructure.

This story is just another reason why Tesla stock is likely worth holding onto over the long haul, even at today's lofty valuation.

Read/Post Comments (4) | Recommend This Article (8)

Comments from our Foolish Readers

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  • Report this Comment On August 30, 2013, at 8:58 PM, SteveTG3 wrote:

    Interesting note on the Superchargers Daniel.

    fwiw, why do you accept the naysayers contention that the company has a lofty valuation?

    traditional metrics on Tesla near term are meaningless in BOTH directions... it would be foolish to value Tesla based on it's 200 forward p.e. OR it's 1500% year over year revenue growth.

    if Tesla bulls wanted to be as silly as the naysayers they could claim Tesla has an anemic valuation based on the 1500% y-o-y revenue numbers. repetition and growling of the naysayers doesn't make their case any less silly.

    Tesla can only be appropriately valued by looking at it's likely scenarios several years out (I look at 3, 5 and 10 myself), forecasting earnings for each, applying a reasonable p.e. and determining a probable valuation based on a weighted average of the scenarios.

    fwiw, the scenarios I find realistic suggest to me fair value is currently about $175.

  • Report this Comment On August 30, 2013, at 10:42 PM, jamesdan567 wrote:

    The first trouble will all "valuation" attempts is they are only good for a day. Tomorrow something happens, and the value changes. The second and more important trouble is that humans cannot predict the future. Just ask RIMM.

    Most of the great investments I have seen since 1980 changed the world in some way. Many brought tremendous value to the customer compared to what they were doing. Most had a charismatic and smart leader.

    Valuation may change from day to day but secular trends and core value propositions do not. I recommended Tesla in 12-2012 at about $33. I still recommend it. Tesla has simply barely gotten started in moving the world to a sustainable transport system, the mission statement per Elon. What he neglected to mention (because its so obvious) is how valuable such a mission is for people and the earth.

    $0.75 of each dollar spent on gasoline (or more) ends up wasted, not moving the ICE car forward. I don't know about you, but I do not like my $ going out the exhaust. With an EV only $0.12 of each dollar I spend on electricity ends up not moving the car forward.

    The implications of reducing the cost of moving the car forward by 84%, applied to 1 billion cars in the world, results in a far higher standard of living for billions of people.

    What is that worth? To me, its worth $2 trillion per year. What does that mean for Tesla? Again, to me, it means Tesla can become the world's most valuable company. I don't think

    anyone or anything can overtake Elon Musk.

  • Report this Comment On August 31, 2013, at 8:08 AM, CrazyDocAl wrote:

    So what happens when you have the heater on? Norway is pretty cold most of the year. How much range do you loose? How much does the range drop when driving in the snow? With an ICE car you loose as much as 50% because of the increased friction of driving in snow.

    I guess Norway is so small so it was low hanging fruit but I don't see Norway as a game changer. I think other countries would have made better targets to try and rope in sales. We'll see.

  • Report this Comment On August 31, 2013, at 11:52 AM, TMFDanielSparks wrote:


    Tesla Norway orders were on pace for 800 cars per year before the company built any Superchargers. Small, but not bad. Of course the key here is just to see how fast they expanded. Before we know it they'll have plenty of other countries in Europe covered as well.

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