Is Tesla (NASDAQ: TSLA) worth $411 a share?
I don’t know, but I love what Baird analyst Ben Kallo recently said about the company …
Tesla isn’t a good short headed into the Model 3 ramp as we continue to believe upcoming catalysts will drive shares higher, and Tesla remains a top pick for 2017.
I’ve been saying this since the company first went public.
Don’t short Tesla.
Do NOT bet against Elon Musk. You will lose.
Hating on Elon
I get that some folks simply look at the technicals and come to the conclusion that Tesla is good for a short. And to be honest, if this were any other stock, that would be a wise decision to make. But this isn’t any other stock, and this isn’t any other CEO.
How many CEOs do you know that would’ve been able to launch a successful electric car company at the height of the Great Recession?
How many CEOs do you know that could motivate the tech elite to build a high-speed transportation system capable of moving folks from New York to D.C. in 30 minutes.
How many CEOs do you know that would have ever even had the foresight to create a re-usable rocket company that would ultimately become the cornerstone of every major rocket launch going forward?
You know, yesterday I watched a video of a SpaceX rocket launch more than three tons of cargo to the International Space Station (ISS), then return to Earth just eight minutes later.
Think about that for a moment.
In the time that it would take one to take a shower, a rocket was launched, then a robotic cargo capsule was sent to the ISS, then the rocket touched back down – flawlessly. This was the 14th time we’ve seen this kind of rocket return to earth, unscathed and ready to be used again.
What likely started out as a brilliant idea in the mind of one brilliant individual, is now a $21.2 billion company that has slashed the cost of space travel.
What I find most interesting though, is that there was far more doubt regarding the potential of Musk’s electric car company than his reusable rocket company. Of course, I maintain that much of the doubt about Tesla has always been manufactured by the old guard of the auto industry.
The competition in the auto market knows that Tesla is capable of disrupting a decades-old industry that has continued to chug along nicely without really having to do much in terms of innovation. The internal combustion engine is an antiquated technology, but without anything to replace it, there was never any motivation to put the time, energy, and capital into offering something better.
So the old guard spent a lot of time attempting to discredit Tesla and Elon Musk. But they failed miserably. In fact, their failures were so great, that most have since relented and are now looking to build their own electric vehicles in an attempt to compete with Tesla on Tesla’s own turf.
Still, there are plenty of folks that still want Tesla to fail. Certainly oil and gas investors despise Tesla for exposing the truth that in the future, our cars will not be fueled by gasoline or diesel.
Short sellers want Tesla to fail, but that’s just because they’re looking to make a few bucks. Most of those folks have lost their shirts, by the way.
And of course, there are those knuckle-dragging Luddites who think that any company offering something with a positive social or environmental impact are worthy of mockery. These folks will always be around. Kind of like roaches. But if you keep the lights on, you won’t see them much.
Now the truth is, I don’t know if Tesla is worth $411. But I have no doubt that the success of the Model 3 will be the keystone for what will soon become one of the most important companies in the world.
I’m not suggesting you run out and buy shares of Tesla, but I am suggesting that if you are betting against the success of the Model 3, you are going to lose. Don’t bet against Tesla, and never bet against the guy that made this possible …