Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • AI Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    • Postcards
Login Archives Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • AI Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    • Postcards
    ×
  • Subscribe
Enter stock ticker or keyword
×
Join 100,000+ Like-Minded Investors Today
Twitter
Tags: Stocks
Stocks: TSLA

The Real Reason Tesla Stock Keeps Going Up Has Nothing to Do with Cars

This expert insight from Keith Fitz-Gerald originally ran in Total Wealth on May 5, 2017

View Comments

Start the conversation

Leave a Reply Click here to cancel reply.

You must be logged in to post a comment.

Keith Fitz-GeraldKeith Fitz-Gerald

Tesla stock hit another new record high Monday... up a staggering 1,200% since the company went public in 2010.

Still, the bears can't give up - not the least of whom is legendary hedge fund manager David Einhorn, who roars that the stuck is in a bubble and on the verge of crashing.

I can't blame him. I'd be bearish, too, if I were the "Mayor of Shortsville" and talking my own book... and if I thought Tesla was a car company.

Tesla's got a secret.

Tesla Should Fail... but Here's Why It Won't

Every conventional metric in the book says Tesla Inc. (Nasdaq: TSLA) is a bust. Earnings per share are negative, the beta is high, and there's a sea of red in the numbers.

Compared to other car manufacturers, production is basically nonexistent - if that's what you call the 76,230 vehicles the company sold in 2016 - when compared to the 17 million sold in each of the last two years in the United States.

By comparison, General Motors Co. (NYSE: GM) sold more than 3 million vehicles, while Ford Motor Co. (NYSE: F) sold more than 2.5 million.

Adding fuel to the proverbial fire, most industry experts have major doubts about Tesla's ability to compete against major names like Honda, Nissan, Volkswagen, and Audi when those companies finally field electric cars.

First-mover advantage only lasts so long, they reason. Besides, goes the alluring argument, Tesla's operating loss was $15,000 per vehicle until very recently. Then there's the fact that the company's also hemorrhaging cash to the tune of $5 billion per year.

Many of those same "experts" are worried about Elon Musk's ability to manage the company. Among other things, he's tied up in the space race, artificial intelligence, the Hyperloop, and the "toxic" acquisition of Solar City.

When, in fact, that's the whole point.

Tesla is not just a car company.

Tesla Is a Utility Killer

The fact that Musk is involved in so many things is precisely the attraction here and why savvy investors would be wise to pay attention.

Musk wants to redefine the electric grid and, with it, the world's energy supply.

Not one in 100,000 investors understands this, which is why so many have been left behind already - and why so many more will be if they don't get on board.

Tesla cars are nothing more than a ticket to entry in Musk's mind.

The real prize is controlling electricity from "soup to nuts," to borrow an old expression.

Premium subscribers to our sister publication, the Money Map Report have had the early (and urgent) opportunity to tap into the expected energy spending boom under President Trump's administration. But this profit play was just one of 10 that I delivered to those subscribers - a select group of "26(f) programs" that you can still "enroll" in today.

These programs gave American retirees the chance to add up to $68,670 to their portfolios …

 

Here Are 10 “One-Click” Ways to Earn 10% or Better on Your Money Every Quarter

Appreciation is great, but it’s possible to get even more out of the shares you own. A lot more: you can easily beat inflation and collect regular income to spare. There are no complicated trades to put on, no high-level options clearances necessary. In fact, you can do this with a couple of mouse clicks – passive income redefined. Click here for the report…

Claim My Free Report

Keith Fitz-GeraldKeith Fitz-Gerald

About the Author

Browse Keith's articles |

Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.

… Read full bio

Subscribe
Login
Notify of
guest

guest

1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Ralph McDonald
Ralph McDonald
6 years ago

I told one of the Tesla engineers when I was visiting the Gigafactory last December and January that the industrial "powerwall" that they had just delivered to an utility in California would eventually dwarf the car business. It can actually start to make wind and solar practical and allow for them to supply some base-load to the grid. It could be an answer to extending the load capitally of major electrical transmission lines by equalizing cyclical loads over a 24 hour period. Also I showed PDF samples of what the proposed solar roof material looked like and she was impressed. A few years back our engineering society had toured a house that had been set up by a major chemical company to showcase their solar roofing product. My wife told them it would only sell in a limited market because of it's appearance from the ground. She was right, but she thinks that the Tesla roof products overcome the ugly of the other products. I am a recently retired electrical engineer who has worked in both the chemical & utility industries.

0
Reply


Latest News

September 15, 2023 • By Shah Gilani

We're Headed for a Second Banking Crisis - Here's What to Do

September 14, 2023 • By Tom Gentile

Tulips Are the Secret to Trading the Next 300% Rally in AI

September 14, 2023 • By Chris Johnson

Tulips Are Telling Me How To Trade the Next 300% rally in AI
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Penny Hawk Midday Momentum
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Quantum Data Profits Flashpoint Trader Darknet Alpha Accelerators Brutus Alerts Resource Traders Alliance L.A.U.N.C.H. Investor Rob Roy Trader Long-Term Equity Profits

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz