Tesla fueling tommorow's innovations?
James is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
In today's stock market the words innovation and start-up are two very big red flags to most investors. Why? Because in today's market 75% of the start-up companies today fail miserably. Unfortunately companies like Apple (NASDAQ: AAPL) or Microsoft (NASDAQ: MSFT) are hugely popular because they are secure, reasonably safe investments that are amongst the low yielding slow growers that see little more than what you would see if you invested in a savings account.
I think that most people feel they're investing when you invest in companies that are to big to fail...which reminds me of certain car companies such as GM (NYSE: GM) and Chrysler... don't worry Ford (NYSE: F) is falling fast as well. Either way your money is still secure if you invest now...so sad for those who lost out on the huge stock market lapse for those companies that are well on there way to being slow growers once again. Anyway the point here is the companies that show new growth, the ones many loose out on because of the risk involved. I am talking about innovation and creativity. How many companies out there would you invest 30 percent on new growth? I could only think of a few that I would want to throw my money at knowing its an 80/20 chance of survival like Tesla Motors (NASDAQ: TSLA) . I know I just gave you a huge reason not to invest, or maybe if you look at the interior of these companies you will see that they are perfect companies to invest in.
Why Invest in Tesla Motors?
Let me give you some background information on Tesla Motors, Tesla was founded in 1993 by a few people that made performance electric kit cars. I mean what are the odds of a company of such background running into the co-founder Elon Musk, who was the inventor of PayPal now owned and operated by Ebay. Billionaire genius playboy philanthropist...oh wait I'm talking about Iron Man the inspirational fictional action hero that was designed from Elon Musk. Anyway he is actually a genius dad with five kids and the Architect of Tesla Motors and the currently unavailable to stock trading Space X.
Not only is Elon Musk a great family man, he knows how to make money through innovation. I like him for a number of reasons but the biggest reason is his unwillingness to quit. His team of experts running Tesla Motors are highly dedicated to the cause! I am sure those sleepless nights that each one of his crew members pulls are not just for the money, seeing that the company pays only nominally due to current budgets since the company hasn't turned a profit since 2008 when it rolled out with the Tesla Roadster at $100,000 a pop. I love the concept of showboating the technology but it would have been nice to see the profits come up higher than they did. Honestly though even when the less than profitable showboating has come to an end, the Tesla Roadster has served its purpose. To entertain and to attract the viewing audience, It certainly turned heads to the idea of a performance car that was somewhat affordable.
Introducing the Model S, the innovative performance sedan that the high middle class can afford to trade in there fancy Mercedes and BMW for. After all the Model S has outperformed all expectations. I mean I can honestly say that I believe the Model S has by definition become the most attractive mid size sedan in the world. I would buy one and will buy one as soon as I can financially. A lot of people cannot afford the sticker price, however I know Tesla is not finished impressing the world with innovative products. Im ready to see the car that is way more affordable and readily available, knowing I will have to wait! I certainly am really patient and willing to forgo the experience of not having to pay $3.60 a gallon of gas. Really the honest truth is that Tesla is a shoe in for the risk takers, I know I will invest in the stock and will give the highest reviews for this start-up company because of the true wealth this company is poised to bring before it is another Toyota or BMW, i.e. a slow growing stock. I do see a very big increase in the 1 STAR MID CAP COMPANY DESTINED FOR GREAT THINGS.
STOCKNEWBIE86 owns TSLA stock and would recommend this stock to others, do so at your own risk.