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as of November 10, 2017
Price: Tesla $302.99 | Market Cap: $50.9 billion
Price: Ford Motor $12.01 | Market Cap: $47.0 billion
Without bold visionaries, we’d all probably still be living in caves. Tesla, led by the clearly bold and visionary Elon Musk, is without a doubt one of the most innovative companies in any industry today. Its aggressive drive to create an entirely new large-scale car production company with all-new designs, electric propulsion systems, dealer network, refueling infrastructure and software, has the entire 90-million-units/year global light vehicle industry scrambling to catch up.
The Tesla dream is not hard to imagine. Overall demand for electric cars looks poised to grow indefinitely, perhaps taking as much as a 10% share of the light vehicle market, or nearly 10 million units, over the next decade. It’s easy to see how Tesla’s cars could lead the charge.
Putting rough numbers on this dream, Tesla’s stock could be worth nearly double its current price.
We are convinced that electric cars will be a big part of the car industry’s future. And, clearly, Tesla’s story is full of the same bold vision that led the cave-dwellers to migrate into the open fields and build thriving villages on their way to a better civilization. But as not all pioneers survive, we’re not yet convinced that Tesla will, either.
Tesla is pressed by an age-old nemesis, which makes is financials and operations fragile. Why is Ford even in this discussion? Because Tesla’s nemesis is working to Ford’s advantage. Subscribe to The Turnaround Letter for additional stock analysis detailed in the full article.