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Vikas Shukla

Vikas is a reporter and value investor. He contributes breaking news and Op-Ed columns about technology and politics on ValueWalk. Vikas spends most of his time reading investment books, writing about finance and looking for stocks that have significant growth potential.

  • qifsha

    “if you compare us to the world as a whole, we fall strongly into the ultra extreme far left” – That’s utter bullshit. The US are more right-wing than almost any European country. Hell, we don’t even have a universal, mandatory health care system. Countries like China and India shouldn’t be taken as reference for a developed, western country like the US.

  • Midnight Rider

    I’m actually a TSLA bear (unless it’s down to around $110, then I’m a bull short term) but I don’t agree with much of anything in this article.

    Too many “lets just assume” points which are plainly incorrect. Right from the opening he hits us with “The US doesn’t have much of an environmental conscience”. Compared to what? The 4-5 European countries on the entire planet with stricter environmental regulations than us? The interest in electric cars is EXTREMELY high. Hell, TSLA is popular in China where they actually DON’T have an environmental conscience, so that isn’t even relevant. But let us pretend it is:

    American journalists have a habit of considering Scandinavia “the world” just because it’s consistently more homogenous and advanced than the US. We constantly compare ourselves to paradise and ignore the rest of the universe.

    These are the same people who call the US “right wing”. If “the rest of the world” is Sweden, then yes, we are right-wing, but if you compare us to the world as a whole, we fall strongly into the ultra extreme far left. See how that works?

    I usually don’t care about America’s poor geography skills, but once you start trying to tell me to buy or sell a stock based on complete bullshit, I must comment. To make the bizarre assumption that Americans will arbitrarily cling to traditional fuel just because they “don’t care about nature” should not be passed as financial analysis. It’s not true. Americans are dying to go electric.

    Dumping a list of random cars that also exist on the reader and “lets assuming” that they’ll all miraculously absorb the colossal brand image Tesla has built up just by being “kinda greenish too” when none of them really approach TSLA’s performance level is more nonsense nobody should ever make a financial decision based on.

    This is a bad article.

  • Steve H

    da, points well taken.

    As to the I8, nothing out on a 300 mile range all electric. What BMW has described is a plug-in hybrid with 22 miles all electric, the rest powered by gas.

  • dumbarticle

    BMW has the i3 all electric but 118mile max range little ugly duckly car without all of the awesome features of the Model S sitting at a price of 42k…. Want to have that or the best car in the world?

    They are coming out with the i8 in 2014, all electric with a price tag of 136k that has a nice range of 310 miles but a base that is twice as expansive as the model S and it is a coop, so not as practice.

    I am happy that BMW is trying but BMW is one of the most respected car makers in the world, they are trying and they are coming out with a luxury version of the Tesla Roaster 6 years after Tesla.

    To say it would be easy for other companies to just throw money at it is to seriously underestimate what Tesla has accomplished. I think GodelianKnot’s comment nailed it, about Apple, a computer and entertainment company getting into the cell phone market vs big dog cell phone companies. Fact of the matter is, Apple had what the people wanted, and now everyone else is playing catchup.

    When I see these articles about Tesla all time I realize that there are just old people out there who will either go broke betting on the past or die of and allow us to move ahead with our future.

    Vikas, you should get yourself unstuck from the past.

  • WorkandBull

    All the “great” and over-sized company’s hit maturity and will not dominate forever. Ford, Toyota, GM are mature and their whole business model is built around gas vehicles. That is what their investors will ask of them to keep the stock/profit going up. So while they are chasing profit and preservation. Tesla will be creating future with disruptive innovation in not just cars, but electricity as a whole. This is why we have companies like Paypal, Google, Salesforce, list goes on… Following this article would be like me when I thought Google could not go above $200…. Please….

    Tesla is a good long term play. I have sat in their well designed sedan and it will easily beat any other. They rest of them all all hybrid, look odd, and are half attempt at electric due to fear from their core business

  • greendrawer

    Wow. This literally sounds like it was written by a high school student (strugling).

    Valuewalk really is the The National Enquirer of financial news. Congrats.

  • greendrawer

    Ha! You must be the “significant other” of tacomuncher.
    Nice to meet you, Miss.

  • greendrawer

    Relax dude, your mom still loves you even though you are gay.

  • GodelianKnot

    Apple Inc bulls believe that it has unrivaled technology, and is going to rule the smart phone market. But the truth is, companies with decades of experience in the cellphone industry and much deeper pockets are developing their own smart phones. Their diverse product portfolio and strong financial position will ensure that they can weather any unsuccessful product launches or economic setbacks.

    FTFY, circa 2007

  • drivin98

    All this article tells me is that I need to ignore anything Achilles Research says.

  • john f

    Whenever someone uses ‘gay’ as a negative adjective, I assume they have nothing of value to add to the conversation.

  • Steve H

    On valuation comparisons to GM and Ford.

    Absurd. As would be trashing GM and Ford for their respective 2% and 10% revenue growth year over year in comparison to Tesla’s 460%.

    Tesla is in the midst of a massive growth phase, the comparisons are pointless. The level playing field is to look at these businesses, any businesses. if you can forecast the future earnings with enough confidence. If you do not understand their business prospects well enough to do so pass. If you can forecast undervalued future earnings with confidence, buy. Ignore the noise.

  • Steve H

    As to valuation comparison to GM and Ford… blogger is a mile off the mark once again.

    Comparing a company that is crossing the threshold from investment to producer to aging producers is absurd… should we all short GM and Ford because their year over year revenue growth is 2% and 10% respectively compared to 460%?

    Of course not. Ford, GM, and Tesla need to be valued for their stage of development and their probable future earnings, not artificial comparisons.

  • joeinslw

    One thing is sure Tesla’s CEO Elon Musk will never send his leased cars to the crusher like GM did.
    Another is Tesla makes Electric (EV) Vehicles not like GM, Ford, BMW, and others who are comparing their cars to Tesla, but are in reality……Hybrids.

  • Steve H

    first point, Achilles Research is the name a blogger on the blog site Seeking Alpha has given himself.

    secondly, this blogger is miles off the mark.

    1. Tesla will be a massive success with 1 million/year volume at the end of the decade. That will be 1% of the global market… they don’t need to turn the entire market to EVs.

    2. Tesla does have a least a 4 year lead on the competition.

    No automaker has revealed a concept car with over 200 miles range, let alone the rest of Tesla’s combination of performance, safety, SuperCharging network, tech (i.e. over the air performance improvement), preferred buying experience, and cargo space that led Consumer Reports to give the car a score of 99 only once achieved ever by all the other manufacturers combined.

    Thus, Tesla has the field to itself through the launch of Gen III circa 2017. Whatever date other automakers do introduce a car which on paper matches Tesla, it will still need another year or two of real world experience before their EV gains some of the credibility of Tesla’s. I wouldn’t expect Tesla to stand still and watch during that time either.

    Most importantly, if (yes, there is no need for blind faith) Tesla hits its mark with that car, it really does not matter what the larger players do… from 2017 on out the replacement of Camry’s, Accords, Fusiohs Jettas, etc. with $35K EVs that save you $1K/year in gas will be on. If it’s Tesla alone, it will be a few hundred thousand of those ICE cars replaced each year to begin. If anyone else delivers a car matching the Gen III, it will simply mean more of this category replaced more quickly.

  • Joseph Kool

    Oh look all ten Tesla car owners are defending their gay little cars

  • RK

    @tacomuncher
    The real question is what are you trying to compensate for with that big truck?

  • jp

    Just by looking at the design of what Tesla makes, it’s enough said. Forget eco friendly, if I have the money, I’m in for a Tesla for the design.

  • Echo Delta

    LOL. The biggest haulers in the world use electric motors – see how a modern LeTurneau is built. Matter of time.

  • Pete

    Vicas, do you understand why stocks have a higher P/E? Tesla is a growth company. Rev increase from 400 million to 2.3 billion in 1 year. That number should triple again as little in 2 years. And keep growing exponentially after that. GM is not a growth company. They are an inefficient dinosaur of the auto industry. Their decision to “kill the electric car” years ago will haunt them forever. Instead of choosing to make a lasting positive impact on the environment, they chose to ax the electric because of the low maintenance costs (less profit from them) and big oil in their ear. GM will never win the war of electric against Tesla unless their car is 50% cheaper. So if they come out with a 200 mile range for $20,000, they would have a chance. Unfortunately for them, this will never happen. So when Tesla comes out with their $40,000 electric, it will surely crush any cars priced $25-50,000. This the car company of the future. Tesla electrics beat gas competitors every time. They are just a better form of transportation.

  • Fooyoo

    Nay, nay, nay… Maybe you, Vikas Shukla, author of this article, are not environmentally conscious… the rest of the country is, and is becoming ever more so. Please recycle your trash (your article isn’t recyclable). It’s clear that Tesla does not have competition, for exactly the reasons you mentioned – the “good old boys” have nothing worthy to throw at it or its business model. Your article reminds me of bland mushroom soup – fungal and lacking in nourishment.

    Two paragraphs and little insight into what the world consumer and Tesla are about – that is your problem. I won’t do the work for you, but its not Tesla bulls or bears that made Tesla happen… its the unmet needs of this world and a company that is filling them way ahead (and way faster) than anyone else. Where were you a year ago? How about ten? Show us your predictions then… they probably had the same flavor, and they were probably just as inaccurate. Maybe you did not lose enough money shorting Tesla this year to understand that shallow-minded investors are a thing of the past.

  • tacomuncher

    Let’s see an electric pos tow a 40′ trailer

  • tacomuncher

    Love driving by some electric Prius or whatever, that has their window down, that did something stupid in front of me, like impeding traffic, and bellowing smoke in their window from my fire breathing Dodge diesel.

  • Dan Weidelich

    Dumbarticle is correct about Tesla’s massive lead in electric-drive technology… I have also written about its brand power; from an article I wrote last week:

    “No automaker that chooses to concurrently produce internal combustion engine vehicles, can ever be authenticated as having a ‘mission’ that is as purposeful and meaningful as Tesla’s is.”

    http://seekingalpha.com/article/1885311-tesla-brand-is-crown-jewel-to-big-automakers

  • idiocy

    TSLA can grow to 10x the size it is today. Ford and GM can not. I don’t know why this comparison keeps getting made. Bulls are investing in TSLA for growth prospects, not present-day value. Must we keep beating this dead horse?

    “Achilles Research says that the market is unlikely to move entirely to
    electric vehicles. Moreover, the United States doesn’t have the
    reputation of having a very high environmental conscience.” — well thank god Tesla can compete on straight-up value! Even if you don’t care about electric/clean, the Model S is still a great car and in many ways superior to BMW 5 series & Benz S-class. Motortrend’s car of the year 2013.

  • dumbarticle

    Wow, who ever wrote this article clearly has no idea what they are talking about. To think that Tesla does not have an advantage and that other companies can just throw money at it to solve the problem is shining light on your ignorance of the situation. Tell Nissan that throwing money down will just give them a good product is not being aware of the Nissan Leaf, or the BMW i3. These products are trashed compared to the Model S despite money thrown at them. If you do not think that Tesla has a its hands in the future of Electric cars, you are blind. Good luck.

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