I don't like to do it, but I am willing to admit when my investment thesis about a company is wrong. Lately, the thesis I've been reconsidering is that of Tesla Motors
I still don't like that Tesla is losing money or the inevitable delays we will see in the Model S launch, but there are some qualities I find endearing about Tesla.
- Tesla has technology that's the envy of everyone from Toyota
to Panasonic (who both invested in the company). (NYSE: TM)
- The Roadster and Model S both offer better range than most electric cars.
- At a time when some electric cars have uninspired designs, Tesla's vehicles ooze sex appeal.
As much as I like Tesla's vehicles, the option of being a supplier gives Tesla the upside I like to see. After seeing details of the Ford
But I am having trouble answering the question "who is Tesla?" Is it a car manufacturer? Is it a parts supplier for other auto manufacturers like it is doing with Toyota's Rav4? Is it a technology licensing company? Maybe it's some combination of all of the above? If it is some sort of electric car conglomerate, can that model really survive or is a buyout by Toyota or some other manufacturer inevitable?
Maybe all of those options and a still-developing business model are giving Elon Musk the flexibility to build Tesla into an automotive powerhouse. After all, finding the next disruptive technology requires a little faith in the company you are investing in.
More on electric vehicles:
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
Ford Motor is a Motley Fool Stock Advisor recommendation. 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.
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