The last week of March is expected to be huge for Tesla Motors Inc. (NASDAQ: TSLA) as the company unveils its highly awaited mass market electric vehicle, the Tesla Model 3. What is so different here versus the prior Model S and the Model X sport utility vehicle is that the Model 3 is expected to be priced around $35,000 per car.
It goes without saying that there is a lot of hype and a lot of anticipation here. As such, 24/7 Wall St. wanted to look at Tesla’s longer-term expectations by Tesla’s followers to see if the expectations are just far too great. Maybe they are, maybe they are not. If not, investors could be sitting on more than they bargained for.
We cannot rule out how Tesla will be compared to Ford Motor Co. (NYSE: F) and General Motors Co. (NYSE: GM) in the years ahead. Tesla is a high-beta and high-multiple stock, and its $228.00 share price generates a market capitalization rate of $30 billion. Ford’s market cap is $52 billion and its 2015 sales were $149.5 billion. GM’s market cap is $47.7 billion and sales in 2015 were $152 billion. Many investors do not want to consider valuations today — but what about when you compare today to 2019?
So far, Tesla has been hampered in its ability to generate a critical mass of cars. After all, you could drop $100,000 or so on a car, unattainable for most consumers who actually would like to drive a Tesla car. The Model 3 is the effort that can take Tesla into selling hundreds of thousands of models per year.
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