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Price targets for Tesla raised hugely; analysts saying stock could double

/ peterbohjalian / Leave a comment

Via: Source

While there are some pretty vocal skeptics of the company, it is ultimately tough to argue against the seemingly very bright future of Tesla, the luxury-electric automaker.

Every year, emissions regulations are tightened even further by governments around the world, squeezing automakers to create more and more efficient models. And while gas prices have remained low and stagnant through most of 2015, gasoline is ultimately a limited resource, with a price that is always subject to change, for higher, or lower. However, the public’s appetite for beautiful looking, and highly performing vehicles is unlikely to wane as quickly. Thus, the writing is pretty blatantly on the wall that the fully electric automaker is poised to be leader in a potentially massive market.

A number of new reports out of Wall Street this week echo that sentiment, as well. To say Morgan Stanley analyst Adam Jonas is bullish on Tesla would be an understatement. In a new note from Monday morning, Jonas writes that he has increased his price hike on the company’s stock from $280 to $465, citing a number of reasons, the key one of which being an as yet untapped aspect of the business called Tesla Mobility, which is deemed an ‘on-demand, app-based mobility service’, similar perhaps to Uber which itself is valued at over $1 billion.

Also, the automaker is well-positioned to be a leader in not only the electric car industry, but also the self-driving industry as well, an area which many tech giants, and automakers are now exploring. What do you think? Is the sky the limit for Tesla? Or will their growth be limited somehow?

Ferrari set to file for IPO

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Via: Source

Even if you can’t quite afford one of the legendary Italian supercars, you may soon still be able to own a piece of Ferrari itself. No, there’s not some new supercar-crowdfunding/crowdsharing app (dibs that idea) set to debut, but in fact, the legendary automaker is set to become a publicly traded company for the first time in their illustrious history. Let’s take a look at some of the facts on Ferrari ahead of the IPO.

The question investors ponder with Ferrari is simply, is this a good investment? Or is this simply an investment everyone is going to WANT to make. Or does that fact that everyone is going to likely want in on the Ferrari action make it a good play in itself? Indeed, there is a lot to consider.

Ferrari is a relatively unique automaker. They produce at an incredibly low volume compared to many other automakers (shipping just under 8,000 cars last year, as compared to over 36,000 shipped by Maserati), which makes their main customer base of serious collectors, enthusiasts, and actual performance and race car drivers incredibly loyal. But of course, low output can also put a limit on profits, although the company has always performed more than solidly in the past.

This IPO deal is interesting for another reason as well. It is mainly being done to decouple Ferrari from FCA, which currently owns 90% of the company, the other 10% being owned by Piero Ferrari, son of the company’s founder. After the deal, roughly 80% of equity will be in the hands of shareholders. What do you think? Is Ferrari a good long-term stock pick? Or would you be better off simply saving up for one of the gorgeous vehicles?