Who would have thought that "feel-good stories" would be so profitable? This was my mistake. I'm not apologizing for this, though. My investment values have saved me from many traps. But it is clear that Tesla's CEO Elon Musk, has found a niche for his company, which has now made a name for itself.
"Cool factor" is not a term I ever imagined would be assigned to electric vehicles. What Tesla has done has been remarkable. I'm not saying the company has suddenly become a market-share threat to the Big Three. I don't believe Tesla can ever produce enough vehicles to cause Ford and GM to worry.
That said, it's foolish to insist on denying what the company has been able to accomplish in such a short period of time. Take for instance, Tesla's recent performance (May quarter), during which the company posted its first-ever quarterly profit in its 10-year history. No longer can we say the company has never made a profit. Accordingly, I'm willing to adjust the model by which I last applied my investment code.
As a value investor, I can tell you that it wasn't just about the profit, I was impressed more with the fact that the $11.2 million earned was a "real number" -- measure on a GAAP scale -- not the "adjusted" variety. What's more, with revenue soaring 83% year over year, coupled with expanding gross margin, which grew 900 basis points from the February quarter, Tesla's business looked solid. It was no longer just a feel-good story.From the looks of it the company's mission, which is to change the way consumers think about cars and this mundane task called driving, is being executed to perfection. And growth investors have responded. It's still tough for me to accept that I could have blown it this badly. But I've come around since then. I'm not going to bet wrong again. With margin expected to expand to 25% by the end of the year, which is 8% higher than the 17% mark achieved in the May quarter, make no mistake about it -- Tesla is here to stay. And I would do anything to take a Model S for a spin at 88 mph -- go back in time -- and buy the stock. John DeLorean would be proud. At the time of publication, the author held no position in any of the stocks mentioned. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.