rtmark
LearnBonds.com

Tesla Motors Inc (NASDAQ:TSLA) Owners Happy to Pay a Premium, Analysts are Impressed

Tesla Motors, Inc (NASDAQ:TSLA)

Tesla Motors (NASDAQ:TSLA) is here to stay because its appeal transcends class, gender, or race in a sharp contrast to what detractors might think. A research note released by Dan Dolev, an analyst at Jefferies shows that millionaires are not the only people driving Tesla’s EVs. Drivers of Tesla’s EVs cut across a wide range of economic demographics to suggest that Tesla is on the path to widespread adoption.

Tesla Motors, Inc (NASDAQ:TSLA)

Highlights of the report include insight from the responses of 145 Model S owners in a survey. About 70% of people that drive a Tesla made the switch from cars that have price tags below $60,000. The top 20 cars running on gasoline that these people considered before they opted for Tesla had price tags below $60,000. Dolev was quick to note that “on average, owners were willing to pay 60% more for a Tesla”.

Secondly, 85% of the drivers said their next car purchase would certainly be for a Tesla. 83% of them said they would recommend Tesla to family and friends. 25% said they won’t even think about other brands for their next car purchase.

Thirdly, buyers of the EVs do get $7,500 in tax credits when they buy a Tesla. However, 89% of the drivers said that they would still buy a Tesla even without tax credit incentives. 65% of the drivers said they wouldn’t have bought a luxury car if they had not bought a Tesla. All in all, Tesla Motors drivers were content to shell out a 60% premium on the Model S than for other brands.

Proudly Tesla

News broke yesterday that drivers of Tesla’s Model S had collectively driven their cars for more than 1 billion miles. 1 billion miles is the same as 4,186 trips to the moon. This report by Jefferies confirms yesterday’s assertion that Tesla owners love their cars. In fact, the report echoes yesterday’s bullish sentiment that “Teslas are not just status symbols, signs of ostentation, or the latest fad for those with deep pockets“.

Strong Bullish Sentiment

Following the strong brand loyalty that Tesla enjoys, analysts now have a stronger bullish thesis on the stock. Dolev has increased his 2020 production estimates to 515,000 cars ahead of Elon Musk’s forecast of 500,000 cars. He raised his 2016 and 2017 revenue estimates from $9.26B and $12.82B to $9.27B and $12.82B.

He also maintained his “Buy” rating on the stock. The price target was also increased from $350 to $360. Jefferies also thinks that Tesla’s total addressable market could expand by as much as 75% in the next 5 years.

 

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.