TSLA stock: look up where the stock of Tesla

Henry Ford was, from every point of view, a pretentious Egyptian who voluntarily attracted controversy. But his Ford engine (NYSE:F) The T model, a cheap gas car dressed in black, has transformed America. Elon Musk is also an egocentric cantankerous. He is also in controversy. But his You're here (NASDAQ:TSLA) Roadster has transformed the automotive sector in just a decade, creating the first mass-produced electric luxury car.

You take visionaries as they are, warts and everything. Tesla has succeeded beyond the dreams of anyone except Musk. Tesla has produced 350,000 cars in 2018, generating nearly $ 140 million, or 78 cents per fully diluted share, for a $ 7.2 billion business figure.

Tesla produced 63,000 more cars in the first quarter, but lost $ 702 million, or $ 4.10 per share, for a $ 3.5 billion turnover.

Analysts claim the head of Musk. Are they right?

The future of TSLA Stock

Firing Elon Musk today would be like turning Henry Ford a century ago. He is what he is. You get what you get.

Almost three years ago, I wrote that scale production was Tesla's biggest challenge, and that's what happened. Musk has learned that robots can not do everything right now. But the second Tesla plant in Shanghai could produce 2,000 cars a week by the end of the year, an additional 12,000 Teslas were sold in April, and Tesla is now leading a market with dozens of competitors.

Tesla is also working on a global backlog of batteries and a reduction in the price of its solar panels, although these activities also hit a near-term low in the first quarter.

Today, Tesla's problems are more those of a successful business than a start-up. The stock is still expensive compared to other automotive stocks, at about twice the sales. But other auto stocks do not offer Tesla's growth.

Tesla will sell new inventory over the next three years to raise funds for its expansion. This includes the production of a fully autonomous car, a compact SUV and a pickup, as well as a dramatic increase in battery production.

Ford's success is the foundation of the gasoline infrastructure that still dominates our roads. Tesla will now build its own electric "service stations" with restaurants.

The fact is that Tesla continues to grow rapidly. Revenues for the current quarter are estimated at $ 6.5 billion, nearly double the last quarter, with sales for 2020 reaching approximately $ 32 billion. If it can even get close to these goals, the Tesla stock should look like a bargain at current prices.

But analysts disagree that Tesla will achieve its goals and value. Ford, which just outperformed Tesla in market capitalization last month, is paying close to $ 40 billion a quarter. Ford does not grow, but its dividend yields more than 5.8% at current prices, and Tesla does not even earn money.

The final result

In the past, I've been so hard on anyone.

I called it a bubble stock, I correctly predicted its downfall last September and asked if Musk's magic had disappeared in March, when Tesla's value fell below that of General Motors (NYSE:GM).

But only a fool would have bet on Elon Musk 10 years ago, and only a fool would bet against him now. And there are a lot of crazy people – more than 26% of Tesla's tank is still short.

Musk has always claimed to hate shorts, but it's the secret weapon of his stock. The shorts have borrowed their shares and must, at some point, redeem them to repay their loans.

I suspect the next big move in this stock will be up.

Dana Blankenhorn is a financial and technological journalist. He is the author of a new crime thriller, the reluctant detective discovers his family., available now on the Amazon Kindle Store. Write him to [email protected] or follow him on Twitter at @danablankenhorn. At the time of writing this article, he did not own any of the companies mentioned in this article.