Tesla Motors Inc (TSLA): Expectations High, Cramer Says Don’t Fear BMW

Tesla Motors Inc (TSLA): Expectations High, Cramer Says Don’t Fear BMW
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Tesla Motors Inc (NASDAQ:TSLA) releases its latest quarterly results next week, and analyst expectations are running high ahead of the report. Deutsche Bank upgraded the stock last week, and Wedbush analysts, though less optimistic, still expect the EV automaker to come out ahead of consensus. Shares of Tesla Motors Inc (NASDAQ:TSLA) have risen approximately 250 percent year to date and more than 340 percent in a trailing one year period.

Tesla Motors Inc (TSLA): Expectations High, Cramer Says Don’t Fear BMW

Analysts increase their estimates for Tesla

According to a Forbes post contributed by Zacks, analysts have gradually been revising their estimates for the company higher. Their research shows expectations for the full year as rising from a loss of 77 cents per share 30 days ago to a loss of 60 cents per share now.

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Analysts have also increased their estimates for the current quarter over the last 30 days, which means that they increasingly like Tesla’s short term prospects also. If analyst views are any indication, Tesla Motors Inc (NASDAQ:TSLA) could surprise next week when it releases its latest results.

Tesla not threatened by BMW

Although Jim Cramer of TheStreet recently called Tesla a cult stock and said he doesn’t comment on cult stocks, he did provide an interesting opinion on the company’s competition against BMW. Some have said BMW’s new electric vehicles pose a real threat to Tesla, but Cramer doesn’t buy it. He said it’s “premature” to jump to that sort of conclusion and even went so far as to say that it’s “farfetched” that BWM will kill Tesla.

Once again Cramer reiterated his statement that Tesla is a cult stock, which means it’s difficult to determine what’s driving the stock upward. He also said Tesla’s Model S is especially prestigious—so prestigious, in fact, that it beats BMW’s electric vehicles, in his view.

He notes that the Model S has a higher range than the BMW i3, which only gets 100 miles on a charge. He said many people have been referring to the i3 as “an urban car,” but there aren’t many urban charging stations in the U.S.

In addition, he notes that Tesla Motors Inc (NASDAQ:TSLA) is having trouble meeting demand, although almost anyone can get a BMW, which makes Tesla’s vehicles more prestigious. He did say though, that he thinks there’s plenty of room for both automakers to find success in electric vehicles. His main point was that Tesla doesn’t have anything to fear from BMW.

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Michelle Jones is editor-in-chief for ValueWalk.com and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at [email protected]
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