Tesla Motors Inc (NASDAQ:TSLA)’ Model S meets the global test

Posted by Nathan Alexander August 29, 2013 0 Comment 1439 views


Tesla Motors Inc (NASDAQ:TSLA) has hit the $20B market-value mark. For a ten year old carmaker that milestone is a very significant one. This year, the company is targeting at delivering 21,000 luxury-sedans. It has only 1% of the monthly sales that Ford U.S has but its market capitalization is already almost a third of General Motors $48B market value. What is also notable is the fact that Tesla is now more valuable than Suzuki, Mazda and Fiat which is the majority-owner of the Chrysler group.

In 2013, Tesla shares are up 390%. They have been traded at 260 times the estimated earnings for 2013 in comparison to 10 times for GM and 11times for Ford. This stupendous Tesla climb has left short-sellers devastated.

Demand Vs supply

Probably the one thing that hasn’t really run well for Tesla is that it is not able to churn out a sufficient number of $70,000+, Model-S sedans to meet the demand. In May, Consumer Reports reported that it was the amongst the best cars that had ever been tested by them. This news had gone hand in hands with the Tesla’s first ever quarterly-profit which led to a secondary public-stock sale. Due to this the company managed to raise over $1B. This money was then moved back into the company and the U.S Energy Department loan was paid-back 9 years before time.

The global space

On the global level, TSLA has just opened-up a unit in the Netherlands. The Model S is being delivered to eager French, Dutch and Belgian customers. In the eastern hemisphere, China is a hotspot for the company and it has received deposits from a minimum of 300 customers to reserve the Tesla S. This is interesting because the company has not yet priced the car for the Chinese market. Tesla Motors Inc (NASDAQ:TSLA) sure is going places.


About Nathan Alexander

Nathan Alexander holds bachelor’s degrees in Journalism and European Studies from Boston University. Nathan reports round up the day’s business and financial market news and include keynote interviews with major business players and updates on Asian, European and US stock markets. He has interviewed heads of leading European banking institutions such as European Central Bank President Jean-Claude Trichet and HSBC Chairman Stephen Green, and CEOs from the business world including Microsoft founder Bill Gates, Virgin Chairman Sir Richard Branson and former Porsche President and CEO Dr Wendelin Wiedeking.

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