Do you consider yourself a savvy investor? Did you buy Apple stocks when they were a few bucks a share? Do you like making money?
If so, you might want to prep your portfolio. Tesla, the world’s first (seemingly) successful maker of electric cars is reportedly getting ready to release its Initial Public Offering on the week of June 28th. In other words, if ya wanna buy some Tesla stock, the time is coming. But is it a good buy?
First a disclaimer I shouldn’t have to put up, but I will anyway… I’m not a stock expert. I did make some very good pickups during the stock market crash of the Fall of 2008 (Ford among them!) But that doesn’t make me an expert in anyway.
That said, I’m strongly considering picking up some Tesla stocks when they do finally go on sale. Why?
- The Tesla Roadster is a hit, even at $110,000. Tesla managed to wedge its foot in the door for electric vehicles at a time when the world is shying away from gasoline. And unlike many electric car companies, many of Tesla’s claims on range and charging and speed have proven to be true.
- Elon Musk claims he is broke and Tesla has yet to make a profit despite selling Roadsters at $110,000 a piece. Why is this a good point? Because here is a man who so believes in his business ventures that he is willing to sink his own personal wealth into them. Some may say this is a sign that his businesses are losing money. Maybe they are. But that brings me to my third point.
- Tesla + Toyota = match made in heaven. Tesla needs Toyota’s mass production capability to bring down the costs of a family-friendly electric sedan. Toyota, so far as I know, has no serious electric-only vehicle plans. They need each other, and if Toyota trusts in Tesla, that is good enough for me.
Again, this is not financial advice. Don’t run out, mortgage your house and leverage everything you own into buying Tesla stock. But with an estimated selling stock of $14-16 a share, Tesla hopes to sell about 11.1 million shares to bring in $178 million. If Tesla really takes off, those shares could double in a short time. Look for Tesla under the abbreviation TSLA on the Nasdaq.
Just sayin’, you might want to consider it.
Source: Wall Street Journal | Image: Tesla
PDF 
About Christopher DeMorro
If I only had a few more grand in the bank. Sigh!!!
If I only had a few more grand in the bank. Sigh!!!
The problem here is that none of the people involved at Tesla are really “car” people – there have been a few postings about what Tesla wants to do with NUMMI, for instance, that are really scary. I wouldn’t feel secure taking a JOB at Tesla, much less buying stock … if anything, treat it like Vegas. The IPO will be hyped, it will probably make money, but keep in mind that Tesla’s competitors spend more on their entry-level econoboxes than Tesla will spend on its range-topping Model S … and the mainstream market is not kind to visionaries with sub-par product (just ask Tucker, Bricklin, DeLorean, and dozens of others).
The problem here is that none of the people involved at Tesla are really “car” people – there have been a few postings about what Tesla wants to do with NUMMI, for instance, that are really scary. I wouldn’t feel secure taking a JOB at Tesla, much less buying stock … if anything, treat it like Vegas. The IPO will be hyped, it will probably make money, but keep in mind that Tesla’s competitors spend more on their entry-level econoboxes than Tesla will spend on its range-topping Model S … and the mainstream market is not kind to visionaries with sub-par product (just ask Tucker, Bricklin, DeLorean, and dozens of others).
Jo Borras (comment) is so wrong. Tesla has hired the best in the industry from around the world to produce the 2nd generation vehicle; just check out their web site to see who is on board. The real problem here is that CEO’s of most other car companies do not want to change anything including oil spills and air polution.
Monday, June 28, they had their hopes pinned on the payola that has spauned dozens of negative articles about Elon Musk’s divorce (give it a rest!) and about how broke he is. Today, June 23, they are all having high level board meetings to discuss “what to do!” The Chevy Volt was admittedly (by a now retired GM VP) inspired by the Tesla Roadster. Like most CEO’s, he didn’t care about global warming, he actually said it was a crock. He cared about the eventual competition. I can guarantee you that there are a bunch of CEO’s today who now “get it” (about the competition). They still don’t get it about ecology, which is why their “me too” products will ultimately fail.