Why Now Is a Great Time to Buy Tesla

Tesla (NASDAQ: TSLA  ) has had a rocky couple of months recently. Cars are catching on fire. There's been an investigation by the National Transportation Safety Board. And the share price is down 18% over the past three months.

Fool contributor David Meier thinks investors need to focus on what's important. In the video, David and John Reeves talk about the current situation at Tesla. David lays out his case for why he thinks Tesla is a buy right now at these prices.

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Read/Post Comments (3) | Recommend This Article (5)

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  • Report this Comment On December 09, 2013, at 12:26 AM, dannystrong wrote:

    Oh god, the Fool is still flogging shares of Tesla. If you guys aren't being paid by the Tesla publicity department, you really should be -- certainly you're using their press releases as your "research". Tesla's financing is a pyramid scheme (listen to that whole "watch it over time" schpiel at the end and see how that's not a description of a pyramid scheme -- to the suckers) that has very little to do with selling actual cars. Buyer beware.

  • Report this Comment On December 09, 2013, at 10:42 AM, damilkman wrote:

    I think John Reeves really nailed the issue with the skeptics when he asked is not the valuation based on faith. David Meier really did not have a good comeback. We all agree that the current product is fabulous. However, there is a big difference selling a 70K car with 30K of add ons to millionares who are treating it as as fourth car verses selling a 30K car with 5K of add ons to an individual where that is the only car. The current valuation is only worth it if the second event occurs.

    In the end John Reeves is right in that all the TSLA bulls have is faith. I forget the TMF writer but he pegged this stock the best. You have to treat it the same way a venture capitalist does. Your giving seed money to a dream because you could either come out big or lose it all.

  • Report this Comment On December 12, 2013, at 11:20 AM, JulianCox wrote:


    The bears have TOTALLY misread the battery supply constrain issue.

    Tesla has under two separate contracts with Panasonic:

    1. Cells enough for 80,0000 vehicles (2011 contract).

    2. 2 Billion Cells (2013 contract)

    The total from 2012 to 2017 is 300,000 ~ 400,000 vehicles.

    This is sufficient to support ~100% compound annual growth from now to 2018 without ANY new supplies from LG, Samsung etc or ANY need for a new factory.

    The factory concept is a all about how to ramp over 500,000 vehicles annually from 2018. Tesla is already operating on internal targets of 400,000 vehicles in 2018, 700,000 vehicles in 2019. Fair bet to suggest 1,2 Million vehicles in 2020. Not a struggle to get to 348,000 vehicles in 2020 that John Lovello of BOA needs to justify today's share price.

    The actual ramp in Tesla production IS cash flow positive ($49 Million added to the bank balance in Q3 after only 5500 cars sold). Te figures above yield free cash flow in the $3~8 Billion range prior to 2017! Ample ample ample to make a cell production plant and halve or 1/3rd the cost per kWh of cells.

    The bears are completely blind-sided to these facts.


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