Watch Tesla Monday After Barron’s Drubbing

A Tesla (TSLA) stock chart has a wonderful hockey stick-shape to it, as production of the company’s shapely Model S – and the revenue it’s bringing in – has excited investors. Billionaire founder Elon Musk sees the S drawing North American sales of 15,000 units this year at about $90,000 a pop, which puts it in the company of top-line models sold by Mercedes, BMW, Audi and Toyoto’s (TM) Lexus units.

TSLA Chart

TSLA data by YCharts

But Barron’s writer Bill Alpert wisely asks in its cover story this week whether the Tesla share price hasn’t gotten far ahead of itself, at more than $100, and suggests $50 might be a more reasonable price for the stock to fetch.

Tesla’s future – or at least the bigger future investors see – rests on it bringing battery costs way down and launching a lower-priced model that can sell many more units. Though that launch is not expected unti l 2016, Barron’s points out, the stock price today suggests the launch will be a huge success, pushing Tesla sales into the hundreds of thousands of cars. That’s a big bet.

There have been plenty of Tesla doubters along the way. The Barron’s piece, however, pulls together sales and financial data in a way that should cause Tesla bulls to reconsider their position.

Jeff Bailey, The Editor of YCharts, is a former reporter, editor and columnist at the Wall Street Journal and New York Times. He can be reached at editor@ycharts.com. You can also request a demonstration of YCharts Platinum.

Read more articles about: Company Analysis  

blog comments powered by Disqus
Advertisement

Search Articles

Subscribe to YCharts Analysis

Advertisement

{{root.upsell.info.feature_headline}}.
Upgrade to {{root.upsell.info.tier_name}}. Start Your YCharts Membership. Start your {{root.upsell.info.tier_name}} Membership

{{root.upsell.info.feature_description}}

{{root.upsell.info.is_upgrade ? "Upgrade Now" : "Get Started Now"}}

Already a YCharts Member? Already a {{root.upsell.info.tier_name}} Member? Sign in here.