Perfect Timing For Tesla Motors Inc (TSLA)’s Revolution

For the second half of 2013, Tesla Motors Inc (NASDAQ:TSLA) looks to have a jump on its rivals. So much so that General Motors has assembled a special team to evaluate the Tesla Model S. While its 90-second battery replacement pack is quite far from being implemented on a large scale, the company’s policy of having proprietary rights over the recharging utilities is giving it a comparative advantage of rivals such as Toyota and Ford.

While Toyota does not have an all-electric vehicle, Ford’s Focus Electric does not enjoy the same luxury or recharging capabilities as offered by Tesla Motors Inc (NASDAQ:TSLA). What does this mean for Tesla? Well, first and foremost, Tesla is becoming a status symbol that makes heads turn even at a place like California, which is earning the Model S a lot of fame, acclaim and, most importantly, sales. I expect Tesla’s revenues and cash flows to swell considerably for the remainder of 2013.

On the other hand, Toyota’s Prius is the most famous hybrid car available in the U.S. market, but the brand is recognized by Corolla – not Prius. Furthermore, Ford’s fledgling sales of the Focus Electric increasingly place it in the ‘Dog’ corner of the Boston Matrix.

While the P/E ratio puts Toyota fairly in the overvalued segment, Ford is undervalued, but has low growth prospects for the future as it loses market share in Europe and is outpaced by General Motors in China. Increasing competition in North America is bound to saturate the sales and thus cannot be used as a long-term justification for prospective growth.

Final word

To be honest, based on Elon Musk’s innovative past and the market changing nature of Model S, Tesla Motors Inc (NASDAQ:TSLA) has no challengers when it comes to where I’d want to land my hard-earned money. Buy now, before the earnings report is released – this is the perfect time for Tesla’s revolution.

The article Perfect Timing For Tesla’s Revolution originally appeared on Fool.com and is written by Awais Malik.

Awais Malik has no position in any stocks mentioned. The Motley Fool recommends Ford, General Motors, and Tesla Motors. The Motley Fool owns shares of Ford and Tesla Motors. Awais is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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