Following my weekend exploring car-related news and films, a clear memory of Back To The Future comes alive when I see the Tesla Roadster and read about the upcoming Model S Sedan. Founded by Elon Musk, one of the original members of the pay pal mafia, the company IPO’ed in July, 2010 and if provides “spice” into the electric car equaiation: aka this is not your PRIUS experience.
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According to the company profile (via Marketwach)
It’s flagship product, The Tesla S, accelerates from zero to 60 miles per hour in 3.7 seconds… Using a 240 volt, 40 amp outlet that is available in many homes in the United States for electric appliances, charging the Tesla Roadster battery pack to full capacity would take approximately 7 hours, which could be reduced to 4.5 hours with a professionally installed 70 amp circuit. The Company plans to continue to develop its electric powertrain technology and introduce additional electric vehicles, such as its planned Model S sedan. It is designing the Model S to be a four door, five passenger premium sedan that offers exceptional performance, functionality and attractive styling with zero tailpipe emissions at a compelling cost of ownership… It plans to be a global manufacturer and direct seller of electric vehicles and electric vehicle technologies. It competes in the premium sport vehicle market against selected premium roadsters and coupes.
Although I haven’t done an in-depth analysis, it is important to note that the company relies heavily in government subsidies to fuel its growth and is not yet profitable. Regardless, my view tend to focus on chart analysis, howeever it is important to have a peak at some key issues of the company, in my search for longer term swing positions -whenever possible.
According to finviz, almost 50% of the company is owned by institutions and has a high short interest (10% in crease the last week) provided it will take 10 days for all the sellers to cover their short positions, if the stock keeps on rallying -it ended +6.20% this week, and +37% this year). Base for last week rally was the disclosure of a $100 million deal with Toyota Motor Co. to supply powertrain systems for the Japanese auto maker’s upcoming electric RAV4 sport-utility vehicles.