Editor’s Note: Related tickers: Tesla Motors Inc (NASDAQ:TSLA), Apple Inc. (NASDAQ:AAPL)
At one time, Apple Inc. (NASDAQ:AAPL) was easily the most popular stock in the U.S. market. Nearly every investor was watching or invested in the company, and it didn’t hurt that Apple Inc. (NASDAQ:AAPL) shares were surging as well. However, the love for all-things Apple Inc. (NASDAQ:AAPL) has died down lately as shares of the computer giant have plunged. The once high-flyer is now down 25% over the past year, erasing many memories of its historic surge. Thanks to this downfall, many investors have been looking for the next glamour stock, a firm to take the mantle from Apple Inc. (NASDAQ:AAPL) and captivate investors. While it has been a difficult search, some believe that we have found that next hot stock in newcomer Tesla Motors Inc (NASDAQ:TSLA).
Tesla Motors Looks To China With Cautious Optimism (Gas2)
With over 1.3 billion people and much of the world’s manufacturing and economic power, China holds incredible buying power and a nigh-insatiable lust for luxury goods. For high-end car makers like Tesla Motors Inc (NASDAQ:TSLA) though, selling products in China is both a risky and worthwhile endeavor, and it seems like Tesla Motors Inc (NASDAQ:TSLA) already has pent-up demand for its electric sedan. Taking Tesla Motors Inc (NASDAQ:TSLA) to China certainly is a good way to make money, and the company claims to already have hundreds of pre-orders in Hong Kong, and is expected to open a massive dealership (three times the largest U.S. dealership) in Beijing soon. Companies like Audi, BMW, and Mercedes are experiencing unprecedented growth as China’s elite gobble up luxury goods like they’re going out of style.
Tesla Motors Stock Expected to Rise, OK to Buy, says Deutsche Bank Report (GreenOptimistic)
Starting from its initial public offering of $19/shr in July 2010, Tesla Motors Inc (NASDAQ:TSLA) stock has since hit a high of $137.49/shr. An overall 716% increase in three years. According to Investopedia, the most reliable and stable stocks grow at a rate of around 10% annually. Investing in faster-growing stocks can make people a lot of money in the short term, but it’s always difficult to know when to back out before you lose everything. I’ve seen some reports that suggest that Tesla Motors Inc (NASDAQ:TSLA) stock prices and their rise could only be the prelude to a precipitous fall. Basically, what they were saying is that Tesla Motors Inc (NASDAQ:TSLA)’ success is too good to be true and that buying Tesla Motors Inc (NASDAQ:TSLA) stock is a gamble at best.
25 Percent Gross Margin by Q4 a Possibility at Tesla (MorningLedger)
Increasingly analysts believe that Tesla Motors Inc (NASDAQ:TSLA) CEO can achieve gross margins of 25 percent or more might be possible. The industry average was closer to 11 percent last year while Porsche Automobil Holding SE (ETR:PAH3) (FRA:PAH3) enjoys more than 40 percent. Reasons for the optimism include increased expectations that Tesla Motors Inc (NASDAQ:TSLA) can produce 40,000 units from its current assembly lines compared to 25,000 (~) 30,000 with the same configuration. According to a report from istockanalyst, other factors regulatory credits, price hikes, and yen weakness.
