We do not make recommendations for individual stocks at The Money Vikings. 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 fun money invested in individual stocks that one likes. 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. Especially above the current polarizing and toxic political climate. Some of us want to move forward each day and build the future. He has a vision of 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! 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.
He not only has a vision, every day the guy puts in 15 hours of work and billions in investments 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. The closest thing I can think of is Bill and Melinda Gates’ efforts to improve the lives of billions in what is typically referred to as the “3rd World.”
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. Investments that in the short will not satisfy Wall Streets short term outlook. Tesla is looking out years. I personally belive in the long run many of his companies will turn a profit, think Space X. I have even read rumors that investors in Tesla would receive an early option to buy Space X stock if it ever went public. I personally think many of his endeavors are going to work out over time. How many times did people say Steve Jobs and Apple were going down in flames, and it did several times. That is the nature of these types of dreamers. 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. Wall Street says the company is “burning through cash”. Yes, but that cash is being used 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. Mars is an amazing next large step for mankind! And believe it or not, if you read a biography on Mr. Musk you will see how his various companies and the visions/innovations tie together.