Tesla Motors is named after the Serbian-born American electrical engineer/inventor Nikola Tesla. Although some ten years old, Tesla only came into my consciousness a year back when Walter Price @ RCM Technology Trust (where I am an NED) decided to add it to our portfolio. Last August Tesla shares traded at $26. On Friday they closed at $129 – up 5-fold.
Tesla designs and manufacturer all-electric cars. Although based in California, it has recently set up an office in Maidenhead. If one thinks electric cars, you get an image of something rather utilitarian. But just look at their new Series S luxury sedan. A true beauty! And just about to be launched in the UK. Pricetag c$70,000. Range 265 miles. Estimated deliveries in 2014? 30
,000 units! Tesla is building a series of charging stations in the US to allow users to go a little further.
The ‘technology’ is all in the lithium batteries. The value is all in making beautiful cars that appeal to the ultra rich who want to drive around town saying ‘look how rich and green I am!’. Somewhat of an oxymoron I suspect.
Anyway, Tesla now has a market cap of $15b and might well enter the NASDAQ100. It’s already bigger than Fiat and Peugeot combined. Many, of course, think it’s a bubble ripe for bursting. But Tesla shows that if you build something truly beautiful the rich will suspend their senses and buy it.
Note– If Tesla wishes to make one available for a weekend test drive, we promise to be kinder that Jeremy Clarkson on Top Gear…