Tesla: Great cars, ordinary investment

Intelligent Investor

Independent Financial Research

The hype over Tesla’s (NASDAQ:TSLA) new Model 3 is exceeded only by the hype in the company's share price After unveiling its Model 3 recently, the excitement over Tesla (NASDAQ:TSLA) and its founder Elon Musk has only increased. Who can’t but admire Musk as he leads the transition from the internal combustion engine to electric powered vehicles? Yet in my view the hype over the Model 3 is exceeded only by the hype in Tesla’s share price. At US$257, Tesla has a market capitalisation of around US$34bn compared to US$46bn and US$50bn for General Motors (NYSE:GM) and Ford (NYSE:F), respectively. To put these figures in perspective, Tesla sold 51,000 cars in 2015 whereas GM and Ford sold 3.6 million and 3 million respectively in North America alone (and millions more around the world). Unsurprisingly, whilst its two US-based rivals made billions in operating profit, Tesla recorded an operating loss of US$720m. Read full article here: (VIEW LINK)


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Independent Financial Research

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