Why Tesla, Tesla Energy and Space X Are Cool (It is much more than a car company)

Why is Tesla so cool? The simple answer is it’s about freedom, doing things better and continually pushing the boundaries of technological breakthroughs!

Since we first discussed Tesla it sold for about $200/share. Each one of those shares subsequently rose to  over $2,000/share then it did a 4 for 1 stock split. Now each one of those shares that split are worth over $600/share. A $2,000 investment a few years ago would now be worth about $25,000! Wow!

We do not make recommendations for individual stocks at The Money Vikings, but we do like to analyze different companies of interest and perhaps take 5-10% of our portfolio and invest. In other words, high risk “fun” money. Speaking of “high risk” and “fun”, let’s talk Tesla and Space X! No matter what happens with Tesla and Space X, the fact remains that these companies are dreaming big and delivering world changing technologies. Perhaps in hindsight they won’t seem like such a huge risk. Remember there was actually a time when all the “experts” said Amazon and Apple were dead. They were sure wrong! Elon Musk has developed an extraordinary vision and is using capital and physics to execute. I am convinced that there is no end to the pursuit and the pushing of old boundaries. What was once only seen in Star Trek is now becoming reality. It is like we are pushing the limits again of human potential and technological disruption. Elon has a vision and is not scared to pursue it with every breath he has. Tesla (TSLA) and Elon Musk continue to challenge us to push the boundaries and think with an expanded consciousness. Model III production has ramped up and the company is now profitable. Can it keep growing?

A HISTORICAL PERSPECTIVE

Many folks forget the turmoil that embroiled Apple many years ago and its lightning rod CEO, Steve Jobs. Now most people think of him as an amazing innovator and businessman. At certain times, this was not popular opinion. Will we think the same thing about Elon Musk and Tesla someday as they continue to push the boundaries of known technology integration into viable products in our everyday lives?

WHAT WILL THE STOCK DO?

Tesla could turn out to be a risky yet very lucrative investment for early investors. They recently added Larry Ellison of Oracle to the board, which brings another old school tech titan to the company. In many ways my interest in Tesla is one of fascination and admiration for the grand vision. I do not know if the company and corresponding stock will survive or not? We are regular guys and do not really trust anyone who says this or that stock is the one! We like the tried and true invest in a low cost index fund over time and reinvest the dividends. That said, it is still fun to have some “mad” money invested in individual stocks like Tesla.
I’m not sure what Tesla stock will do, but I do think Elon Musk has an awe inspiring vision and is making huge investments in factories, technology and tools that may pay off big! Although the stock will go up and down, Mr. Musk is helping to build an exciting future.

MORE THAN A CAR COMPANY

We have been geeking out over Tesla and Elon Musk for years now. I feel that Tesla and Elon Musk in particular has made our country dream again, at least he has opened my eyes to some visionary futuristic ideas. Some of us want to move forward each day and build the future. He has a vision for the following awesome sci fi concepts:
  • colonizing mars
  • artificial intelligence
  • neural net
  • self driving cars
  • rockets to space
  • space travel in general
  • solar power
  • reducing major problems like pollution and congested cities, etc.
What self proclaimed sci fi geek like me cannot love this stuff, making sci fi into reality before our very eyes! In other words, taking the “fi” out of the “sic-fi”. One thing that I think is misunderstood about Tesla is that it is not simply a car company, I think it is more of a technology and energy company.

WORKING RELENTLESSLEY TO BUILD AN AMAZING FUTURE

Musk not only has a vision, buy every day the guy puts in 15 hours of work and billions in investment capital to make all these things become reality. He is on a major mission to transform the future of humanity. When was the last time a leader in any sector had so much ambition, energy and drive? For example, the closest thing I can think of is Bill and Melinda Gates’ efforts to improve the lives of billions in poor under developed countries. Many of the things I read about as a kid in Sci Fi novels and saw in fantasy movies, Elon and his team are working on them! It’s important to realize that these technologies and visions take massive investment.

KEEPING THE LONG RUN IN MIND

Investments that in the short will not satisfy Wall Street’s short term outlook. Tesla is looking out years. In the long run, Tesla and Space X are proving they can turn a profit. I have read that investors in Tesla would receive an early option to buy Space X stock if it ever went public. 2019 or 2020 may see Space X go public, I certainly hope so.

JOBS & BEZOS MODELS

I personally think many of his endeavors are going to work out over time. For example, how many times did people say Steve Jobs and Jeff Bezos were going down in flames, and they did several times. That is the nature of these types of dreamers and innovators. We all get to watch the inevitable “sausage making” as he progresses each and every day with an army of thousands of talented workers behind him.

A GRAND VISION

Mr. Musk has many different visionary business ventures out there trying to solve big problems. The innovation and vision at Space X is phenomenal. He has reduced the cost of rocket launches by amazing factors. His latest launch of the Falcon Heavy holds twice the payload of a shuttle at one-fifteenth the cost of a shuttle launch. A 95% reduction in costs! Any red blooded capitalist has got to love that, no matter what the stock of Tesla does or does not do. No one knows what Tesla stock will be worth in the future. But remember Amazon did not turn a profit for 20 years! Apple had many ups and downs as it continually pushed the envelope and innovated. I ran across an article the other day from 2013 making fun of Amazon and its share price of $380 as too high. As of this week the share price sits at around $1,500. This is not advice about buying any Tesla stock. No one knows the future of the company. Mr. Musk has certainly survived near company death experiences many times. He also has a track record of successes. Tesla is using capital (money) to invest in factories and tools to build products that do make money. Beyond the financials there is something to be said about a visionary and company that helps us dream big again. It seems similar to when President Kennedy laid out a vision to put a man on the moon. Therefore, Mars is an amazing next large step for mankind! I don’t really want to live on Mars since I think planet Earth is a pretty awesome spaceship. If it was relatively safe though, I think I would visit. If you read a biography on Mr. Musk you will see how his various companies and the visions/innovations tie together. Even Musk critics have to admit his crazy life of passion, innovation and pushing boundaries is commendable and will pay dividends for all of humanity. I don’t see anyone else launching rockets then re landing them safely on a small pad in the ocean. Think about that, mic drop!

ARK Innovation

Another great way in my opinion to gain exposure to Tesla is through the ARK Innovation ETF. This ETF famously believes in the future of Tesla and puts Tesla stock price in the thousands in the future.
This is not investment advice in any way to any particular person.

9 thoughts on “Why Tesla, Tesla Energy and Space X Are Cool (It is much more than a car company)

  1. Pingback: premium

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: