Tesla Motors Inc (NASDAQ:TSLA) reported a decent second quarter earnings. They have delivered 7579 Model S electric Sedans, which was more than their target of 7500 cars. This kept them on track to achieve the target of 35000 cars in 2014. Their stock price also has increased by around 50% since the start of the year.
Joe Fahmy, Managing Director at Zor Capital, LLC has over 17 years of experience in trading. Fahmy talked on Yahoo! Finance about Tesla Motor Inc (NASDAQ:TSLA)’s stock.
Fahmy predicted in April that Zillow Inc (NASDAQ:Z) would shoot up by 50% in 6-12 months. As Fahmy predicted, Zillow stock price increase by 65% in four months. Fahmy’s has identified the Tesla Motors Inc (NASDAQ:TSLA) stock as his next big pick.
Fahmy said that the reason is pretty similar with both Zillow and Tesla stock. He added that in March-April lot of high momentum and high valuation stock dropped down by 20-50%, but Zillow never felt anything.
Fahmy’s prediction was based on the fact that, if a stock did not get affected during a downturn in the market, it might have a huge boost in an uptrend, which turned out to be pretty true with Zillow Inc (NASDAQ:Z) stock. He added that Tesla Motor Inc (NASDAQ:TSLA) faced their worst week in 2.5 years just a week back. He pointed out that Tesla also reported good volume of sales and earnings.
“So as soon as we get out of this sort of correction or pullback, whatever you want to call it, I think Tesla, similar situation, great earnings, highly shorted, highly hated disruptive technology, is one of the reasons why we could see Tesla do the same over the next 6-12 months,” Fahmy said.
Even though Tesla Motor Inc (NASDAQ:TSLA) reported a great quarter, many people compare them to the companies like General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F). Based on numbers and volume of sales Tesla has not proved to be a strong competitor to General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F).
Fahmy dismissed all these comparisons and said that Tesla Motor Inc (NASDAQ:TSLA) has never recalled cars like GM did. He pointed out at the expected launch of newer low end models by Tesla and expected penetration into other global markets like China. He thinks that this could fuel Tesla’s growth and make them the next General Motors Company (NYSE:GM) or Ford Motor Company (NYSE:F).