Friday, May 5, 2017

How Tesla Motors Stock is Like Amazon Stock

The Tesla 3 from Electrek

I just read yesterday that if you bought $5,000 of Amazon stock 20 years ago then it would be worth $1 million today. It is almost $1,000 a share. Now originally Amazon was going to sell books, books and more books. They were a book company. Here a book, there a book, everywhere a book. So it was all about the book market.

Now they sell everything and only 4% of what they sell is books. Books are not consumable like food. Tesla Motors was a car company that was going to make and sell cars, cars and more cars. So it fit nicely in the car market with GM and Ford.

But they have a gigafactory in Nevada and one in Buffalo, NY. They plan to have another one in China, Europe and mars. Actually they are not planning on mars, yet. The gigafactory is not to make and sell cars. It is to make batteries.

The first one is going to be bigger than the planet earth. So I guess now you are an expert in physics and say that is impossible but not with Elon Musk's space compression technology. Actually I am exaggerating but the idea is to expand your mind. I just learned that Tesla Motors Inc. has become Tesla Inc to reflect changes.

New information just added May 19, 2017:
Even though this is brand new information, it fits right into the theme of not knowing what Tesla is going to sell next. They are first in line in America of this new technology that is said to be a $2 trillion business that has $0 in business now. Tesla is a technology business.

I even had to look it up. It is called the autonomous taxi market. It is taxis that drive themselves. It can make it almost nothing to own a Tesla car. You can read all about it from CNBC on the article, Investors Who Say Tesla is Overvalued are Missing This Opportunity.

We have no idea what Elon Musk is going to do. As far as right now the gigafactories are making batteries for the homes to store electricity. It also making roofs for houses that will be less expensive and more resilient than other roofs. Plus they will contain invisible solar cells.

Articles that are against the Tesla car company will talk about other car company's electric cars. But they do not have any charging places other than a person's house. Tesla has over 500 charging places on the planet earth (none on mars yet) and plans to double that in 2017. They also have plans for solar cells and wind turbines at the gigafactories to make their own electricity.

Another similarity was that the founder of Amazon, Jeff Bezos, was doing everything wrong. The philosophies of these 2 companies, which many hate, is to put all of their profits into growth and not care about paying dividends to investors. I call what the other companies do being penny smart and dollar foolish. A friend of mine, George Niiranen, likes to use that saying.

 The billionaire Ron Baron says that if you invest in Tesla now and hold it for 15 years, then your profits will be 30 to 50 times. But then it hit me that he may be underestimating Elon Musk. Billionaire Ron Baron expects mind-boggling returns from Elon Musk-led Tesla.

One thing that I like is that the people making money with Tesla will be the people who believe in newer technology and believe that it is much better to protect the earth than to destroy it. The American people deserve a president like Trump because many voted for Clinton and she loves fracking. Bernie Sanders believes that protecting this planet is more important than making a profit. But the old people that like old things like oil and coal are dying out. The people who like clean energy are being born everyday.

I saw the movie Titanic and loved it. My favorite line in the movie was Rose saying "I would rather be his whore than your wife." So you can tell your grandchildren that you sat in the sidelines and watched as Elon Musk did his magic. Or you can say that you helped Elon Musk to do his magic faster. Caution: buying a stock is a gamble and you can lose it all so invest with that understanding.

Here is video that tells how important it is to store electricity in the Tesla power packs. Elon Musk says that this will grow bigger than the car business. 9 minute video.




See my older article with more facts and things going in Tesla called Now is a Great Time to Invest in Tesla Stock. It used to be that to buy stocks, you had to be elite. Note that I like to exaggerate. You had to be a PhD and a millionaire. That is not the case anymore. I have been using Sharebulder that is owned by Capital One for millions of years. No stock broker. No minimum. No fee to join or monthly fees. Maybe there are better places but I do not need to check.

All you have to remember is $6.95. That is the cost to trade that is to buy or sell a stock. So if you want to buy ten billion dollars in Tesla stock, the cost is $6.95. It takes a day to transfer the money from your account to them. Can't wait, well you can do it right away for another $6.95. You can call them with any questions.

If the stock is $320 a share, you can set it to buy at $315 a share and if it gets that low then they buy it. They do the trade when the stock market is open. For the New York Stock Exchange that is 9:30 to 16:00 or 4:00 PM at Eastern time.

 So here is the one I use:

Capital One Investing

Here is a 4 minute video to see how the Tesla car works. Unlike with a regular car, the torque makes it take off like a rocket. See that on here.



The car can drive it itself as shown above. It can also parallel park itself. To pick up a woman, just say "do want a ride in my Tesla?" This is the best video I have seen about the car.

I have just seen another analogy called GENE MUNSTER: Tesla is the next Apple. It is a May 3, 2017 Business Insider article. Apple is the world’s biggest company with a market cap of nearly $770 billion as of this writing. It says:
There are many parallels between Apple about a decade ago and Tesla today, market cap being one of them.
Going back 20 years, the only other additions are Microsoft and General Electric. Therefore, either a consumer electronics company, an energy company, or a conglomerate represented the biggest company in the world. Tesla is all three.  
Tesla’s cars are effectively consumer electronics, albeit expensive ones, that reduce our dependence on oil. Tesla’s acquisition of Solar City and introduction of the Powerwall and Powerpack are next-generation energy plays driving toward the replacement of coal and gas. Doing both makes it a conglomerate. 
Tesla is not a car company. It's an operating system for sustainable energy that combines a powerful brand, a visionary founder, integrated hardware and software, and a halo effect all with the purpose of transforming a combination of large markets.  TSLA might be the next AAPL, but Tesla will forge its own path and the world will be better for it.
Gene Munster is a managing partner and co-founder at Loup Ventures. Prior to Loup Ventures, Gene was a managing director and senior research analyst at Piper Jaffray where he covered technology companies including Apple, Amazon, Google and Facebook. 
A  May 8, 2017 article says Fisher Asset Management LLC Invests $442,000 in Tesla Inc (TSLA). It also says:
A number of other large investors also recently made changes to their positions in the stock. Crestwood Advisors Group LLC bought a new stake in shares of Tesla during the first quarter worth $101,000. Independent Advisor Alliance acquired a new position in Tesla during the fourth quarter worth approximately $102,000. Parallel Advisors LLC acquired a new position in Tesla during the fourth quarter worth approximately $104,000.

Korea Investment CORP raised its position in Tesla by 225.0% in the first quarter. Korea Investment CORP now owns 494 shares of the electric vehicle producer’s stock worth $137,000 after buying an additional 342 shares in the last quarter. Finally, Cable Hill Partners LLC raised its position in Tesla by 36.1% in the third quarter. Cable Hill Partners LLC now owns 693 shares of the electric vehicle producer’s stock worth $139,000 after buying an additional 184 shares in the last quarter. 57.29% of the stock is owned by hedge funds and other institutional investors.

New May 16, 2017 article.

Forget what Wall Street says — Tesla shares are going way higher, two experts predict

"The bull case on Tesla is that it can become the next Amazon or Apple." 

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