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3 Reasons Tesla Motors Will Dominate in 2014
fool.com ^ | January 3, 2014 | Tamara Walsh

Posted on 01/04/2014 10:31:44 AM PST by ckilmer

3 Reasons Tesla Motors Will Dominate in 2014

By Tamara Walsh | More Articles | Save For Later
January 3, 2014 | Comments (2)

Tesla Motors (NASDAQ: TSLA  ) celebrated a record year in 2013, with the stock surging nearly 350% during the year. That's a serious improvement over Tesla's gain of just 7% in 2011. The electric-car maker passed many milestones along the way, including reporting its first quarterly profit and winning the academy award of autos as its zero-emissions Model S took home Motor Trend's 2013 "Car of the Year" award. With the stock growing in value from $32 at the start of 2013 to where it trades today, around $147, it's hard to imagine there's much upside left in the name.

However, these three catalysts should move shares of Tesla higher in the new year, despite investors' soaring expectations for the stock.

Ballooning deliveries
This year, Tesla is on track to deliver more cars than ever before. The EV maker's CEO, Elon Musk, is confident that Tesla can hit an annualized rate of deliveries that exceeds 40,000 cars per year by late 2014. To put this in perspective, that amounts to roughly double Tesla's anticipated output rate of 20,000 cars in fiscal 2013.

In fact, Tesla looks to be ahead of the mark as the company now expects to deliver 21,500 vehicles worldwide for fiscal 2013. Moreover, Musk has a track record of under-promising and over-delivering. Therefore, I wouldn't be surprised if Tesla were to ramp up production even faster in the year ahead.

International expansion
Tesla should unlock even more growth in the quarters to come as it expands operations overseas. The company is still in its infancy, and expanding into new markets, such as China, should help Tesla boost sales. The California-based company began taking reservations for its Model S in China last quarter and plans to make its first deliveries in the Asian country during the first quarter of 2014. In fact, Musk expects to have a handful of Model S cars on a boat to China as early as this month. 

As the world's biggest market for premium sedans, China is an important market for Tesla. Of note is the fact that Tesla has already passed all of the homologation requirements in China, and launched a soft opening of its Beijing showroom in the region that was greeted with great fanfare. Meanwhile, the company has already received "hundreds of orders" for its Model S in Hong Kong, according to Bloomberg.

Source: Tesla Motors.

Additionally, the automaker continues to expand its Supercharger network, in both the United States and abroad, at an impressive clip. Tesla plans to have supercharger stations covering 80% of the U.S. and parts of Canada this year. On top of this, Tesla says it can cover 100% of the population of Germany, the Netherlands, Switzerland, Belgium, Austria, Denmark, and Luxembourg with Superchargers by the end of 2014. 

While these stations create tremendous value for Tesla drivers, they don't cost the company as much as many investors might think. Thanks to a strategic partnership with SolarCity (NASDAQ: SCTY  ) , to supply the solar panels that help power Tesla's supercharger stations, Tesla is able to deploy these stations at a fraction of the cost. Investors can also expect Musk to make a cross-country trip in a Model S later this year using these Superchargers. Ultimately, more Superchargers in more locations should help fuel greater EV adoption.

Model X market debut
The third catalyst for the carmaker this year is the much-anticipated debut of Tesla's Model X crossover vehicle. Tesla will begin deliveries of its Model X in late 2014. Thanks to the success of its Model S, there's already a strong brand presence for the company. This should help boost sales of its crossover vehicle as more Model X cars hit the road later this year.

Blending the benefits of a minivan with the performance of a sports car, the Model X promises to a big hit with drivers in 2014. Built on the same drivetrain as Tesla's Model S, the Model X can go from zero to 60 miles per hour in 4.4 seconds. Tesla first unveiled the all-electric SUV in February 2012, and last year pushed production of the Model X into late 2014 to accommodate sales of its Model S vehicles. Moreover, shares of Tesla should pull ahead later in the year if Tesla can deliver on its revised promise of getting the Model X on the road in 2014.

With these catalysts, together with Elon Musks' visionary leadership, I expect Tesla to achieve another record year in 2014.

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TOPICS: Business/Economy
KEYWORDS: elonmusk; musk; tesla
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To: ckilmer

Sounds familiar


21 posted on 01/04/2014 11:49:58 AM PST by Koracan
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To: ckilmer

Tesla sales are going to be so hot they will be on fire. Literally; On fire.


22 posted on 01/04/2014 11:57:50 AM PST by cyberstoic
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To: adorno

“The consumer never wins, and government never loses.”

Very succinct. Thanks for the reply.


23 posted on 01/04/2014 11:59:03 AM PST by EEGator
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To: FlingWingFlyer
How are these idiots going to recharge their batteries?

From the hole thingie in the wall, of course!

Obama 'n them have made some great strides in scientology, don't you know?

24 posted on 01/04/2014 12:00:02 PM PST by Fightin Whitey
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To: Cyman

http://money.msn.com/investing/post—even-george-clooney-is-complaining-about-tesla

I would consider that a plus.

Tesla’s CEO, Elon Musk is my favorite African American.


25 posted on 01/04/2014 12:07:08 PM PST by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: Moonman62
"Tesla’s CEO, Elon Musk is my favorite African American." You sure?
26 posted on 01/04/2014 12:10:13 PM PST by EEGator
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To: EEGator

Day-yum. What was this thread about?


27 posted on 01/04/2014 12:23:27 PM PST by Salvavida (The restoration of the U.S.A. starts with filling the pews at every Bible-believing church.)
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To: Salvavida

I think Candice Swanepoel.


28 posted on 01/04/2014 12:32:36 PM PST by EEGator
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To: ckilmer

It’s going to be hard to charge up electric cars without coal fired electric generating plants.


29 posted on 01/04/2014 1:14:16 PM PST by Old Yeller
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To: bigbob

Why would you be excited about a nongas car going 20 to 30 miles per gallon when the gassed car has been doing that for decades?


30 posted on 01/04/2014 1:15:02 PM PST by what's up
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To: ckilmer

If you’re about to burn to death while trapped in a battery fire, is there any way to electrocute yourself first or do you have to carry a revolver?


31 posted on 01/04/2014 1:17:33 PM PST by Stentor
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To: ckilmer

Tesla is a flash in the pan. Its buyers are just a bunch of Bat Man wannabees with a little too much money and time on their hands.


32 posted on 01/04/2014 1:46:01 PM PST by AdaGray
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To: ckilmer

Just remember: they call themselves fool.com for a reason.


33 posted on 01/04/2014 1:54:18 PM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: EEGator

I don’t think she’s American, but she could qualify as my favorite African.


34 posted on 01/04/2014 2:50:52 PM PST by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: ckilmer
And with the Millions of $$$$ it received in both California and Federal subsidies that kept it alive, who do you suppose profitted the most when the stock sales went up?

Without the state and fed funding, they would have gone under long ago........

35 posted on 01/04/2014 2:54:16 PM PST by Hot Tabasco (Miss Muffit suffered from arachnophobia.....)
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To: Moonman62

You’re right. I was just thinking of South Africa, and my mind went to her. To be fair, hot women make my IQ drop sharply.


36 posted on 01/04/2014 2:55:06 PM PST by EEGator
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To: FlingWingFlyer

-— How are these idiots going to recharge their batteries? -—

Windmills!

Isn’t this fun?


37 posted on 01/04/2014 2:59:16 PM PST by St_Thomas_Aquinas ( Isaiah 22:22, Matthew 16:19, Revelation 3:7)
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To: catnipman
I agree. Tesla refuses to report their numbers as per "Generally Accepted Accounting Principals" (aka GAAP) and the only reason they are able to "report a profit" is because of government incentives.

Ed Wallace has been on their case for a couple of years now. Tesla would need to build ~100,000 cars per year just to break even.

Don't get me wrong, EVs are fine for running errands around town, which Ed does in his Mitsubishi MiEV for $1.25 in electric costs per week.

This article seems designed to sucker a few more fools onto the bandwagon so that the earlier investors (aka fools) can find a more willing sucker.

38 posted on 01/04/2014 3:04:40 PM PST by jtonn
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To: adorno
Imagine if EVs and hybrids were to take a huge chunk of the auto market, and then imagine what that would do to the gas revenue that government collects and depends on for road maintenance and the number of jobs that would be affected.

There will be at least two solutions proposed for this tax deficiency. My guess is both will be adopted, with some states, counties, cities enacting variations of both.

1. Taxes on electricity will be substantially increased, whether metered for EVs or simply an overall rate increase.

2. A black box will record every mile you drive, and you'll be taxed on the total mileage at rates that exceed the current gasoline tax by 50 to 100 percent (simply my guess).

YOU GONNA PAY MORE TAXES! Surprised?

Prepare to pay your "fair share".

I'm here from the gummit and I'm here to hep you. :-)))

I really ain't from the gummit.

39 posted on 01/04/2014 3:12:25 PM PST by Ole Okie
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To: ckilmer

“And it rates 5.4 Stars in all 57 States!!!”

We’re subsidizing a luxury car; this has always been my issue.

Tesla should build a <$40k model to complement or terminate all subsidies/rebates.

And they can build their own damned supercharger stations (that only work on Teslas) without regard to subsidies.

.02


40 posted on 01/04/2014 3:21:54 PM PST by logi_cal869
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