Road to Domination: Tesla Is Totally Killing It Right Now

Stock shoots up 20% on battery "gigafactory" announcement

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Tesla Motors’ stock has catapulted up about 20% since Monday after earning the endorsement of a top Wall Street analyst as well as Consumer Reports, which rated the company’s Model S best overall auto of 2014 Tuesday.

The electric auto maker saw its stock as high as $256 at around 11:00 a.m. Wednesday, compared with $217 at market close Monday. The company is on a serious roll after Consumer Reports rated the auto best overall car, calling it a “a glimpse into the future.” That glowing review came shortly after Morgan Stanley analyst Adam Jonas said Tesla warrants a share price of $320.

The Wall Street sign of approval came after CEO Elon Musk announced the company is planning to build a “gigafactory” to produce the batteries needed to make more affordable vehicles, Bloomberg reports. The batteries can also be used to store energy for electricity consumers, and analysts have said Tesla’s lithium-ion battery could disrupt the energy market.

“If Tesla can become the world’s low-cost producer in energy storage, we see significant optionality for Tesla to disrupt adjacent industries,” said Jonas.

[Bloomberg]

28 comments
dthorne2800
dthorne2800

If you take away $4 dollar a gallon gasoline everyone can afford these cars. Most people are thinking SUVs and Sedans with V8 motors that guzzle gas at the price point of the model S. Pay 70K for the Tesla and never have to buy gas again. Think of that!

thosrobert
thosrobert

It appears as if many of you would prefer to go back to the days of the horse and buggy.  Knock yourself out.  When automobiles first appeared, they were "toys only for the rich."  Telephones, record players, radios, televisions, microwave ovens, answering machines, VCRs, CD players, mobile phones, all were "toys for the rich."  


The Tesla Model S is a luxury car.  It's also the second fastest car on the American market 0-60 (Only Porsche is faster.).  Within 5 years Tesla is going to offer a far a less luxurious car with not so many horses under the hood for the same price that a Toyota Corrolla fetches.  That's the car for me.  I don't need all the bells and whistles and I don't need all the horses.  I'm going to say good-bye to the oil companies and all those petro-sheiks in the middle east.


If you want to stay a slave to old technology and pay more for it, go right ahead.

cscaley1
cscaley1

See what your company's stock can do when the middle-class American taxpayer struggling to put food on his family's table is forced to pay for half the cost of a billionaire mogul's toy?

ScottStroud
ScottStroud

Seattle is correct. the key to DC technology are the batteries. The company who can optimize, reduce costs, improve the efficiencies of the power  source will be in the 'drivers' seat (no pun intended). the 'adjacent' technology is the power &/ or battery  industries. we work w/ Tesla to provide thermal mgmt solutions for the I2R losses that translate into heat.

lamorpa
lamorpa

Absurd.  Toys for the rich.  The keep the Escalade in a 3 car garage for alternate days.  Their environmental load is 5X what it should be.

daviderichow
daviderichow

One more win for the ownership society. Oh thats right I almost forgot my role is to shut-up, play nice and believe any cost savings will trickle down to us consumer/labor peons. As if profit margins shrink proportionally to cost savings. Laughable delusion! OOPS there I go agian, unthankfull, envious, disposable, rebel rouser that i am. 

formerlyjames
formerlyjames

How much do these top rated cars cost?  Might be worth mention for anybody expecting a big sales boom. 

HushPuppySamurai
HushPuppySamurai

If it's really true that these giga-batteries are going to make solar power into something that kills the electric utilities, then the logical thing to do is to buy stock in Cleveland Electric, since the sun never shines in Cleveland.

RodneyVero
RodneyVero

This is great news for your 1%'er pals TIME/WARNER.  Any headlines for us po'folk sitting out here watching our wealth, consumptive power, jobs, and retirement decrease at an exponentially faster/faster rate?

bushwoodmember
bushwoodmember

"we see significant optionality for Tesla to disrupt adjacent industries,”


Who talks like that?  What does that even mean?


Talk about a disconnect between Wall Street and Main Street - good God.  At least now I know what all the fees on my mutual funds are being used for; to pay guys like Jonas to come up with 'analysis' like that.

ScottStroud
ScottStroud

See what IS happening to the avg taxpayer who must fund OBAMACARE,  the left-wing statists/ Marxists pipe dream ;-)

lamorpa
lamorpa

@ScottStroud

So you're saying that the key to an electric car is the electricity supply?

ScottStroud
ScottStroud

Do you have something against the "rich"? THe libs & OBama have been promoting this class warefare tripe since day one. It is Marxist in origin. FYI, the rich buy toys, & other, which create jobs for those making the toys & services that go with them. Contrary to liberal dogma, the rich don't horde money. they invest & spend, just like most do in similar positions. We need more rich people, but Obama & his minions/ sycophants are seeing to it we all share equally in misery & poverty. WAKE UP!

ChristopherGriffin
ChristopherGriffin

@formerlyjames  Soon, Tesla will be making a smaller "non-luxury" sedan and SUV/Crossover with a base price of around $35,000. With the much lower cost of operation, and virtually no maintenance, this will be similar to owning a $25,000 ICE-powered sedan. At that equivalent cost of ownership, most middle-class families will be able to afford it. Tesla's current facility in Fremont, CA is capable of building up to 500,000 cars per year.

ScottStroud
ScottStroud

How about a cool $100k+ :-) Their base model is ~ $68k, but who wants a base model? Those who would buy this auto want more performance.

seattlesmith1000
seattlesmith1000

@bushwoodmember  The point being made is that Tesla is years ahead of anyone else in battery technologies. They are not currently using that to full advantage, since they are only making enough batteries for their cars. If Tesla built a huge factory to focus on batteries, then they could become a battery producer and not just a car manufacturer, hence disruption in other adjacent industries.


This is not about making cars for the rich, this is about an expensive technology becoming relevant to anyone and everyone who takes part in our energy hungry economy. Yes, Tesla is currently making cars for the 1%, but that is only necessary until they can pay off their R&D and begin to bring costs down.

lamorpa
lamorpa

@ScottStroud  

I've got an idea - stick somewhere near the topic at hand, instead of (both of you) blowing a tirade fit.

lamorpa
lamorpa

@ScottStroud  

Touchy there are 'we'?  Waste is waste.  This toy is purchased under the guise of being environmentally friendly, which it certainly, effectively, is not.  Sorry about your explosive paranoid partisan sensitivities (at a rabid level, it seems, for our current president).  You're off base on this one.  The only reason wealth was mentioned in this case is because it takes it to buy an expensive 2-seater as an elective secondary mode of transportation.  It's like those feel-good PV panels up on the roofs of homes that only see 125 sunny days a year.  Waste is waste.

Ogmios
Ogmios

@ScottStroud  The rich in the US is only 1% of the population, so how do they create jobs. Trickle down economics has been proven to not work. Get into the 21st century

VeltonEvans
VeltonEvans

The base car is awesome I know I own one and I am not rich people need to get informed and it is one less vehicle I have to fuel

NoahRuddell
NoahRuddell

@seattlesmith1000 @bushwoodmember  The Tesla Model S is not for the 1%ers, its price point is comparable to a Volvo, Cadillac or BMW 3. If you factor in tax breaks and fuel savings (90mpg equivalent) its cost is right there with a Honda accord, Toyota Camry, or any other economy midsize sedan. 

ryanigle
ryanigle

@seattlesmith1000 @bushwoodmember

Completelly agree with Seattle.  Everyone is slamming the company because they used govt loans and sell expensive cars, but they have paid off the loans and evertually, their work benefits everyone.  I can't afford a Tesla, but when cars were first introduced, the average person couldn't afford them at all.  Now, the benefit of the technological breakthrough of the automobile benefits everyone, and i bet if all the cars in the driveways of those posting were to dissapear, they would yell and screm about that.  The move to more energy efficient options in transportation is just the next wave in transportation .  Exact same thing with personal computers, washing machines, TVs, smartphones, etc. 

AlejandraGos
AlejandraGos

@ChristopherGriffin  I think the fuss is cause they cant buy it. I cant either, not right now. But I would totally. 

A car that is so different will obviously be not the most cheap car at the beginning. People forget that they are working on everything still.

By the way, I love the fact that Tesla has an electric car that actually looks GOOD.

Dont they look beautiful. 


ChristopherGriffin
ChristopherGriffin

@lamorpa @ScottStroud  Who's talking about an "expensive 2-seater"? Tesla doesn't make the Roadster anymore! Google "Tesla Model S", and try to catch up. The Model S is the best car ever tested by Consumer Reports. They said it rides better than a $330.000 Rolls Royce! In the past year, it has won almost every award there is, and was just yesterday named "Consumer Reports best overall vehicle for 2014". Oh, and before you go there, Consumer Reports cannot be "bought out".


In the Spring of 2015, Tesla will start deliveries of its Model X luxury SUV/Crossover.


In early 2017, they will have a slightly smaller, mass-produced "non-luxury" sedan (Model E) and SUV/Crossover (Model Y) that will have a base price of around $35,000 and will have at least a 200 mile range. This new lithium-ion cell "Gigafactory" is being built just in time, to provide the batteries to build hundreds of thousands of these "middle-class family" cars.


After that, Tesla is looking to develop a 100% electric 1/2-ton pickup truck. At the same time, they might build the successor to the Tesla Roadster, and rumors say this sports car will accelerate as quickly as a Bugatti Veyron, although its top speed will be much lower, unless they figure out a way to give it a transmission. This was attempted during the development of the original Roadster, but the tremendous torque of the electric motor kept breaking the transmission.


Oh, and about your "feel-good PV panels", Tesla is now building stationary battery packs for the solar industry (residential and commercial). You just mount one of these battery boxes on the wall of your garage, and it collects and stores energy from your solar panels to use when the sun is not out. Just for reference, one 85kWh battery pack in a Tesla Model S holds enough energy to power the average household for 3.5 DAYS!! So there goes your argument about the "125 sunny days a year".

ChristopherGriffin
ChristopherGriffin

@NoahRuddell @seattlesmith1000 @bushwoodmember  In the country of Norway, they are starting to use Tesla Model S' for taxi cabs! By using the FREE Tesla Supercharger stations to completely recharge a depleted battery in only 75 minutes, their operational costs are almost zero! BTW, for those who don't already know, the Model S has an EPA-Certified average range of 265 miles per charge. At a steady pace of 55 mph, it will go slightly more than 300 miles. I've read that if you only putt around town with it (think major city taxi cabs), you can get almost 400 miles on a charge!