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