Tesla Motors Inc (NASDAQ:TSLA)’s stock, which currently values the company at $30 billion, continues to be the subject of much debate. Proponents believe the electric automaker will change the world, while detractors believe the company’s stock has blown well past a reasonable point that can be justified by anything but rose-colored glasses. As Michael Santoli said today on Yahoo! Finance, the optimism in Tesla Motors Inc (NASDAQ:TSLA)’s stock is like a perfect storm comprised of many factors, the most notable of which is Elon Musk himself.
“I think there’s a really tiny number of companies out there that are run by this kind of visionary capitalist hero like Elon Musk, where you actually believe he’s building something huge. It’s completely his life’s work, it’s not just like spreadsheet jockey financial stuff, this is he thinks the world has to change and he’s going to try and do it,” Santoli said.
Tesla Motors Inc (NASDAQ:TSLA) and its investors believe the company will be selling 500,000 units of its three models by 2020, the most important of which will be the upcoming Model 3 sedan, with a price point of $35,000 that will make it far more affordable than the other models (the existing Model S, and the closer Model X SUV).
However, there’s no guarantee the Model 3, planned for a 2017 release, will have such an easy time in the electric market as seems to be predicted, given the host of existing competitors building up market share and consumer loyalty ahead of them, including the Chevy Volt and the Nissan Leaf.
As Santoli pointed out, it’s very hard to derail a stock that is largely based on expectations that don’t need to be met for six years. So long as Tesla Motors Inc (NASDAQ:TSLA) meets their production targets along the way, and their new models live up to expectations, we aren’t likely to know who was right until that 2020 date rolls around.
Among Tesla Motors Inc (NASDAQ:TSLA)’s shareholders is Andor Capital Management, a fund managed by Daniel Benton, which owns around 1.30 million shares of the company as of the end of June.