This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Tesla Motors Inc: The Auto Industry's Apple Inc.

Tesla Motors Inc TSLA's superchargers could be just the disruption the auto industry needs

The argument of why Tesla Motors Inc (TSLA - Get Report) is like Apple Inc. (AAPL - Get Report) certainly isn’t a new one. This time around though, we have it from the perspective of an Apple expert. Forbes contributor Ken Kam tells us the view of Marketocracy’s Eugene Groysman.

Tesla breaks auto boundaries

Groysman said he first became interested in Tesla Motors Inc (TSLA - Get Report) when he started seeing the automaker’s cars around Milwaukee, where he lives. He said if Tesla vehicles made their way from large cities like New York or Chicago, then it means that they have become more cost effective. He believes that technologies must become cost effective before they can disrupt any industry.

According to the Apple Inc. (AAPL - Get Report), he sees Tesla Motors Inc (TSLA - Get Report) has surpassing the boundaries which have held back other automakers. He notes that both Nissan Motor Co., Ltd. ADR OTCMKTS:NSANY TYO:7201 and Toyota Motor Corp ADR (TM - Get Report) TYO:7203 both have electric vehicles, but they’re just an additional offering. Tesla, meanwhile, only offers electric vehicles. He called the Model S “a very compelling car.”

What Tesla can do to disrupt

Groysman agreed with others in saying that Tesla Motors Inc (TSLA - Get Report) must continue to improve its battery. The automaker is working on making the battery more cost effective for average drivers. Also Tesla must continue to improve the range and cut down the amount of time it takes to charge the vehicle. He believes that the superchargers are the first step in Tesla’s disruption of the auto industry. However, he believes that a five-minute charge would more directly place Tesla in competition with traditional cars because that would be about in line with a standard fill-up at a gas station.

So in a nutshell, Tesla Motors Inc (TSLA - Get Report) must spread its supercharger stations throughout the nation, build its planned gigafactory and beat back the political opposition which has developed in a number of states. Auto dealers have been resisting Tesla’s direct to consumer sales model because they see it as a threat.

Having faith in Tesla

He also stated that in order to profit off of Tesla Motors Inc (TSLA - Get Report)’s stock, investors will have to have faith that CEO Elon Musk is enough like Apple Inc. (AAPL - Get Report) CEO Steve jobs. Jobs provided very effective leadership, and Musk will have to do the same thing. Groysman believes he is up to the task though.

He predicts continued volatility in Tesla Motors Inc (TSLA - Get Report) shares, although he thinks they will continue to rise as long as the automaker keeps making progress in its quest to make a more cost effective electric vehicle. He believes the automaker’s stock could even double when its car does become cost effective. In addition, he suggests that Ford Motor Company (F - Get Report) and General Motors Company (GM) may have to cut out dealerships or else compete with a major disadvantage in terms of cost.

The post Tesla Motors Inc: The Auto Industry’s Apple Inc. appeared first on ValueWalk.

-By Michelle Jones

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
F $11.45 0.00%
TM $110.39 0.00%
TSLA $162.60 0.00%
FB $104.07 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs