Tesla Motors Inc (NASDAQ:TSLA) continues to draw the ire and applause of the markets. Seeking Alpha contributor Odysseus believes the stock will continue its wild ups and downs for the next few years but be relegated to the price per earnings of an automotive stock later. There are a few interesting things worth noting in the article, which is heavy with estimates. But some companies are able to move beyond the estimates made by outside parties who can’t know what they are capable of.
The True Value Of Tesla
It’s certainly true that we won’t know the true value of Tesla Motors Inc (NASDAQ:TSLA) shares until the company turns out more vehicles. But this is the case of virtually any company. Until actual results are announced, investors are trading on their best guesses about what it can do, and right now, the bulls see the sky as the limit for Tesla Motors Inc (NASDAQ:TSLA).
Dov Gertzulin's DG Capital is having a strong year. According to a copy of the hedge fund's letter to investors of its DG Value Partners Class C strategy, the fund is up 36.4% of the year to the end of June, after a performance of 12.8% in the second quarter. The Class C strategy is Read More
Odysseus makes a note that short interest in Tesla during the month of June rose by almost 7 percent according to NASDAQ, but this leaves out some other interesting numbers. A review of all the numbers indicates that short interest in the company in terms of number of shares has gradually been coming down since March.
While it’s true that the number of shares which were shorted grew by more than 1.3 million between the end of May and the middle of June, that number edged downward slightly by the end of June, losing a little over 100,000 shares. It will be interesting to see what happens in the first part of July. There are certainly plenty of voices saying that the stock is grossly overvalued, but there are just as many saying that it isn’t. The fact is that we can’t know the true value of the company’s stock just yet, and as history has shown us this year so far, those who short Tesla Motors Inc (NASDAQ:TSLA) tend to feel the pain later on.
Will Tesla Meet Its Goals This Year?
Bears maintain that Tesla Motors Inc (NASDAQ:TSLA) won’t be able to sell the 21,000 vehicles it has promised this year, but the fact of the matter is that the automaker doesn’t show any signs of slowing down. This week CEO Elon Musk said they rolled out more than 400 Model S sedans in a month, surpassing their goal. And he added that they didn’t surpass their goal “trivially,” meaning they were likely quite a bit above that goal.
Kimbal Musk, Elon Musk’s brother and also a Tesla Motors Inc (NASDAQ:TSLA) board member, tweeted in early June that there were 80 cars per day at the Tesla Motors Inc (NASDAQ:TSLA) factory. It sounds like production is going well, and with the company adding other continents into its sales, it sounds more likely than not that the automaker will masterfully hit its goals this year. But as with any company, we won’t know until the real numbers come in. Everything else is pure speculation.