Today's Stock Pick of the Week

At The Motley Fool, we want to be accountable for our recommendations. Each week, I'll make a CAPScall on my profile in Motley Fool CAPS and highlight my pick in Friday's video. This video series may also include updates on previous calls and related news points.

In today's video, we get behind the wheel of start-up electric-car maker Tesla Motors (Nasdaq: TSLA  ) . Two big oil players, BP (NYSE: BP  ) and ExxonMobil (NYSE: XOM  ) , deliver a hopeless outlook for the electric vehicle market. But Tesla pushes forward with plans to deliver its zero-emission Model S sedan, as well as a crossover vehicle dubbed Model X.

It isn't always easy to predict which stocks will outperform and which will fizzle. Luckily, some of The Motley Fool's brightest analysts have done the hard work for you. Click here for instant access to this free report: "The Stocks Only the Smartest Investors Are Buying." The report reveals why even Buffet might be interested in these stocks, and how you can make money from them.

Fool contributor Tamara Rutter owns shares of Tesla Motors. Follow her on Twitter using the handle @TamaraRutter for daily roundup coverage and other Foolish insights. Motley Fool newsletter services have recommended buying 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.


Read/Post Comments (1) | Recommend This Article (4)

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  • Report this Comment On February 17, 2012, at 3:54 PM, F2JP wrote:

    Tamara:

    Thanks for taking the time to do the research needed to write a balanced and accurate piece.

    It's so refreshing to see someone look deep enough into Tesla to understand that the reasons their stock is doing so well are that they have engineered a superior product, they very carefully laid out a plan and are sticking to it, and so far they have been very successful at implementing that plan.

    Tesla has spent way less money developing the Roadster, Model S and Model X, than Nissan has in developing the leaf and Chevy has in developing the volt. The Tesla vehicles have better performance, more range, no legacy drive train technology.

    They also have better styling, and more innovations beyond just drive train. They have sold out the first year of production for the Model S, without even having an advertising budget. For a small startup to achieve all of this when the much bigger companies that have vastly more resources at their disposal, either choose not to or fail to, is indeed significant.

    Hey, what's not to like? Unfortunately, no matter how good something is, there'll always be someone around to bash it. Thanks for giving Tesla and honest look in a fair report.

    It's no surprise that Oil company executives would have such a dim view of the electric vehicle propagation potential and timeline. After all, what else could they say?

    Actually, I think I have an answer to that.

    They could say that they're at least beginning to understand that, although oil has helped take mankind to previously unimaginable achievements, at current and perceived future rates of consumption, oil's usefulness to mankind must evolve. They can also say that being the astute businessmen that they are, they have realized the enormous potential of developing alternative sources of energy and bringing them to market.

    I believe that what oil company executives are not taking into consideration, or are not fully aware of, is just how many people realize that the time for oil companies to continue making the huge profits they do, while being given subsidies, and tax breaks that are taken out of the wallets of working men, women and teenagers has got to come to an end, and the sooner the better.

    Speculators can drive up the price of oil to the point of becoming one of the triggers that set off the current global economic meltdown. Even now, they're beginning the march to ramp up oil prices yet again.

    For what? Greed!

    More and more people are now deciding that this has to stop.

    Our addiction to oil consumption is like any other addiction were going to ignore the dangers to the environment, the negative political and social implications, the ever increasing cost of use. But we're only going to do this up to a point. I believe that time has come.

    If I were an oil company executive, or board member instead of trying to figure out ways to stifle the development of new, clean, renewable, sustainable energy sources and technologies, I would be trying to think of ways that I could be in the forefront of the development. I would be thinking of ways that I can make profit from it. I'd want to be the hero, not the villain.

    Oil companies are approaching a crossroads. They could take one path where they have the opportunity to embrace change and help create a better future. Or they could take the other path where they continue to resist change under the belief that it's not necessary, and certainly not desirable.

    I believe the oil industry is in a unique position to take advantage of a whole new world of opportunities. They have the resources to invest in the development of technology that will bring them and the rest of the world once again to unimaginable achievements.

    I ask, why not?

    Countries like China who have the benefit of nationalized resources are currently realizing that dependency on the resources of the past is not the path to the future. They can act quickly and decisively and are beginning to do so. Why wait and watch as they steal your potential markets?

    Why follow and then have to play catch-up, when you can lead?

    I would be very happy to have conversations with any oil company board members or CEOs on how a Paradigm Shift can help them profit immensely.

    By reconsidering which path to take, and why this is the right time to begin making those changes, oil companies of the past can truly evolve into the energy companies of the future.

    Frank J Perruccio

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