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Does All the Good News About Tesla Motors Inc. Mean It's Time to Buy?

Shares of electric-vehicle maker Tesla  (NASDAQ: TSLA  )  have remained steady today despite a flurry of recent news surrounding the company. For instance, CEO Elon Musk announced that he's willing to share some of Tesla's patents in a sort of open-source arrangement to spur other manufacturers' EV production. In addition, the New Jersey legislature has advanced a bill that would allow Tesla to operate four stores and a service center in the state, while California is relaxing regulatory and environmental standards to encourage Tesla to build its Gigafactory there.

But what about the competition? BMW launched the i8 plug-in hybrid yesterday in Germany. While not an all-electric luxury sedan and a little pricier than Tesla's offerings, the i8 is a sporty option for wealthy individuals in the "green car" space. According to Motley Fool analyst Blake Bos, he doesn't think BMW's car is directly comparable to the Model S, though he does believe that investors should keep an eye on this BMW line.

So, is today the day for investors to dive into Tesla? On today's "Stock of the Day," Blake says no. While the news is interesting, none of it changes Tesla's fundamentals. He thinks investors should really pay attention to updates about the Gigafactory, for that is key to the company meeting its goals and Wall Street's expectations in a timely fashion.

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Comments from our Foolish Readers

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  • Report this Comment On June 06, 2014, at 6:43 PM, Ustauber wrote:


  • Report this Comment On June 06, 2014, at 6:53 PM, SteveTG3 wrote:

    Please correct the story and video.

    Elon Musk did indeed say he is thinking about doing something controversial with Tesla's patents. The idea that he will open Tesla's battery patents is a reasonable speculation as to what he might do. However, Elon Musk has not said that, and we simply do not know what he is considering doing (IIRC he did not even specify that the battery patents were the ones with which he is contemplating doing something controversial).

    As to Blake's conjecture as to why Musk might do this... what can I say, there's lots of information on Tesla and Elon Musk, go ahead and dig in. For now I'll simply say that Musk does not need other automakers to do or not do anything for him to get the Gen III car out at the price target Tesla has set... the battery price reductions he needs will be driven by the Gigafactory, and perhaps to a lesser extent, some technological improvements (which would be in view at this point as Tesla will be tooling the factory in the next year or two).

    Tesla's future is of course not a certainty, same like any stock. There are questions you can raise. Before you do, please do more research... you are making claims and raising questions that are literally making your readers less capable of estimating Tesla's value than they were before coming to this page.

  • Report this Comment On June 06, 2014, at 7:03 PM, SteveTG3 wrote:

    I might add, until you've done enough research to know why Musk might open patents to other manufacturers even if this does not lead to more Tesla's sold, it is obvious to anyone who has done even the most basic investigation of primary source research on either the company or Musk that you have not done this work and are anything but a source of expertise on this company.

  • Report this Comment On June 06, 2014, at 8:51 PM, corrado wrote:

    the stock is ready to go down to $40 again ! this guys are just a bubble!

  • Report this Comment On June 06, 2014, at 8:51 PM, corrado wrote:

    sell sell this guys are a bubble

  • Report this Comment On June 06, 2014, at 11:21 PM, Ustauber wrote:

    @ corrado- does your mother knows that you are on the computer?

  • Report this Comment On June 07, 2014, at 7:39 AM, drax7 wrote:

    Tesla is one of the most compelling stories out there. It's got the potential to disrupt the automobile and energy sector. If right, the mkt cap will be in the 100s of billions.

  • Report this Comment On June 08, 2014, at 1:30 PM, corrado wrote:

    yes my mother is with me and she short the stock!!!!

  • Report this Comment On June 08, 2014, at 1:37 PM, corrado wrote:

    one more point I am from Europe and the gas is cheaper that electricity .plus European buy only small cars because the parking and no garage space so forget about Europe al waste of time!

  • Report this Comment On June 09, 2014, at 7:17 AM, lowmaple wrote:

    Sorry but Tesla's which have already been paid for, are on their way to Europe while you are sleep writing.

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