Tesla Motors (NASDAQ: TSLA) is an innovative Electric Vehicle (EV) company that engages in designing, manufacturing and selling high-performance electric vehicles, electric vehicle powertrain components and energy storage systems. TSLA is currently producing and selling its second vehicle, the Model S sedan. TSLA has sold 77,507 Model S vehicles through 2nd quarter of 2015. TSLA differentiates itself on the basis of its innovative design, manufacturing, Powertrain engineering and vehicle engineering. The growing network of superchargers along with destination charging program throughout North America, Europe and Asia is removing the barriers to the wider adoption of electrical vehicles.
TSLA is focusing more on Asian market as it stated in …show more content…
Valuations and notorious volatility:
TSLA’s fundamentals in terms of sales are quite healthy as it delivered 11,507 vehicles in 2nd Quarter of 2015 which is a 52% increase over Q2 last year. TSLA’s financial position is also healthy with $1.53 billion in cash and debt as around 9% of its market cap most of which is fixed rate, so it would be easier for the company to raise additional capital to fuel its capital expenditures given favorable market sentiments, but its stock has remained volatile as usual and high and low of the year to date has been $280 and $185 respectively.
The table below summarizes the valuations made by 16 Analysts which give a mean target price of $288.5 with an upside potential of 11% but the uncertainty of valuation, which is inherent to the company as its sector of Electric Vehicle is relatively new and unproven, can be observed from the massive range of $222 between price targets.
Price Target …show more content…
TSLA is developing this factory in partnership with Panasonic, the company’s long term battery supplier, and further partners are also expected to join the project. The factory will be developed on more than 24 million square feet of land which will make it the biggest factory in the world. Gigafactory will allow TSLA to reduce cost of the battery pack by more than 30%, however a high level of uncertainty is associated this project as the delays in the construction process could restrain the company’s ability to develop new models within the scheduled time and cost of the factory may also increase than what is currently estimated which might have an adverse impact on expected cost efficiencies. The production at the facility is expected to start by 2016 and full capacity is expected to be attained by
TSLA is focusing more on Asian market as it stated in …show more content…
Valuations and notorious volatility:
TSLA’s fundamentals in terms of sales are quite healthy as it delivered 11,507 vehicles in 2nd Quarter of 2015 which is a 52% increase over Q2 last year. TSLA’s financial position is also healthy with $1.53 billion in cash and debt as around 9% of its market cap most of which is fixed rate, so it would be easier for the company to raise additional capital to fuel its capital expenditures given favorable market sentiments, but its stock has remained volatile as usual and high and low of the year to date has been $280 and $185 respectively.
The table below summarizes the valuations made by 16 Analysts which give a mean target price of $288.5 with an upside potential of 11% but the uncertainty of valuation, which is inherent to the company as its sector of Electric Vehicle is relatively new and unproven, can be observed from the massive range of $222 between price targets.
Price Target …show more content…
TSLA is developing this factory in partnership with Panasonic, the company’s long term battery supplier, and further partners are also expected to join the project. The factory will be developed on more than 24 million square feet of land which will make it the biggest factory in the world. Gigafactory will allow TSLA to reduce cost of the battery pack by more than 30%, however a high level of uncertainty is associated this project as the delays in the construction process could restrain the company’s ability to develop new models within the scheduled time and cost of the factory may also increase than what is currently estimated which might have an adverse impact on expected cost efficiencies. The production at the facility is expected to start by 2016 and full capacity is expected to be attained by