Are Tesla Motors Inc. Investors Glass Half Full Or Half Empty Thinkers?

Some big news appears to be developing for Tesla Motors and other electric-vehicle producers.

May 29, 2014 at 3:00PM

The Dow Jones Industrial Average (DJINDICES:^DJI) was trading 44 points higher, or 0.27%, despite headlines across the Internet shouting that U.S. gross domestic product for the first quarter was revised to a contraction of 1%. That's the first time national GDP had contracted since the first quarter of 2011.

Cue mass panic and sell, sell, sell!

Or, rather, take a deep breath and realize that nothing has really changed since yesterday, or the month before, and the economy is still projected to post slow and steady growth. In fact, the report wasn't all that bad, and the majority of the decline occurred because companies took on less inventory -- which will likely reverse in the second quarter.

David Rosenberg, chief economist and strategist at Gluskin Sheff and Associates, agreed in his note to clients. "The economy is in the process of reaccelerating," said Rosenberg. Bloomberg reported that he said the firm's model of the economy "suggests near-0% odds of recession for the coming year."

With the markets essentially shrugging off the GDP contraction, let's tlook at some specific companies making news today.

Model S Photo Gallery

Tesla's Model S charging. Source: Tesla Motors

Outside the Dow, Tesla Motors (NASDAQ:TSLA) investors are probably asking themselves if they are glass half full or glass half empty type of people. According to The Wall Street Journal, top officials from eight states along the U.S. coasts are putting together a plan aimed at generating sales of 3.3 million zero-emission vehicles by 2025. Additional details are expected at some point today on the plan, which would use a combination of consumer incentives and regulatory action to spur electric-vehicle sales. 

At first glance this certainly seems like great news for Tesla investors, as the young automaker has proven to be a step ahead of all electric competition with its groundbreaking Model S. However, if you're a glass half empty type of person, this news also means there's more incentive for giant global automakers to pour additional research and development funding into electric vehicles.

If you're a Tesla investor, this news should seem positive rather than negative. CEO Elon Musk has welcomed competition to speed up the electric-vehicle adoption process; until competition proves it can produce a vehicle even close to the quality and performance of a Model S, Tesla will continue to have an advantage in the EV market.

Inside the Dow, Caterpillar (NYSE:CAT) the world's largest maker of construction and mining equipment, last week reported a sales decline for the three months through April compared to the same time frame a year earlier. Global sales fell 13% overall, led by a 70% decline in its Asia-Pacific region and a 68% drop in Latin America. The large decline in Asia is due to mining, where companies have significantly cut spending amid lower commodity prices. However, some good news came recently from Deutsche Bank.

According to an analysis from the bank, reported by Barron's, multiple leading indicators pointed to a stabilizing mining equipment, including: "1) equipment destocking at mines is 75-80% over and is expected to be completed by year end and excess capacity for Caterpillar is 10-15%"

This confirms what many have said for some time: 2014 wasn't going to be much of an improvement from a dismal 2013 mining performance, but business should begin rebounding in 2015. Caterpillar's share price has risen roughly 13.5% year to date, outpacing the S&P 500's 3.5% gain, suggesting that some investors have already bought in before the predicted business rebound next year.

Leaked: Apple's next smart device (warning, it may shock you)
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Daniel Miller has no position in any stocks mentioned. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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