5 Disruptive Reasons to Buy Tesla Motors

A Tesla Model X prototype, due for mass production later this year. Source: Tesla Motors.

Tesla Motors (NASDAQ: TSLA  ) is a disruptive game changer.

The electric-car company is on pace to deliver 35,000 vehicles in 2014, expects to grow a huge market in China over the next few years, and plans to become profitable for the long haul this year.

No fewer than five Motley Fool newsletter services have bought or recommended Tesla shares. But it's also a hugely controversial stock, with just two CAPS stars out of five and 27% of its float sold short as of the end of May.

Tesla founder and CEO Elon Musk has a history of winning big. He made millions when eBay (NASDAQ: EBAY  ) bought out his PayPal online payment system. Then he took the eBay windfall and invested it all in Tesla and SpaceX.

Musk is making billions in Tesla shares now and millions more from his investment in SolarCity (NASDAQ: SCTY  ) , not to mention the way he's making history through the SpaceX program.

All of these details help make Tesla the attractive stock it is today, but it took one final push to make Motley Fool analyst Anders Bylund buy his first shares in the automaker.

Find out the five tastiest ingredients to Tesla's special sauce in the slideshow below, including the one radical move that finally triggered Bylund's itchy "buy" finger.

Warren Buffett's worst auto nightmare (Hint: It's not Tesla)
A major technological shift is happening in the automotive industry. Most people are skeptical about its impact. Warren Buffett isn't one of them. He recently called it a "real threat" to one of his favorite businesses. An executive at Ford called the technology "fantastic." The beauty for investors is that there is an easy way to invest in this megatrend. Click here to access our exclusive report on this stock.

Read/Post Comments (3) | Recommend This Article (15)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 22, 2014, at 1:20 PM, Ustauber wrote:

    Thx TSLA

  • Report this Comment On June 23, 2014, at 5:37 AM, Roddy6667 wrote:

    The electric-car company is on pace (in the future) to deliver 35,000 vehicles in 2014, expects (in the future) to grow a huge market in China over the next few years, and plans (in the future) to become profitable for the long haul this year.

    At present, TSLA has never made one dollar of profit GAAP.

  • Report this Comment On June 23, 2014, at 11:06 AM, TMFZahrim wrote:


    True, with two caveats:

    * The GAAP income trend is positive. Barring uneforeseen setbacks, GAAP profits should start appearing in the near future.

    * Tesla delivered two quarters of positive free cash flows before dipping back into the red again. Point being, the company already knows how to deliver real cash profits from time to time. Now let's see this happening on a regular basis.


Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2997454, ~/Articles/ArticleHandler.aspx, 8/31/2015 4:54:55 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Anders Bylund

Anders Bylund is a Foolish Technology and Entertainment Specialist. Where the two markets intersect, you'll find his wheelhouse. He has been an official Fool since 2006 but a jester all his life.

Hypoallergenic. Contains six flavors not found in nature. Believes in coyotes and time as an abstract.

Follow Anders on Twitter, LinkedIn, and Google+.

Today's Market

updated 2 days ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:00 PM
EBAY $27.25 Up +0.15 +0.55%
eBay CAPS Rating: ****
SCTY $48.00 Up +1.77 +3.83%
SolarCity CAPS Rating: ****
TSLA $248.48 Up +5.49 +2.26%
Tesla Motors CAPS Rating: **