If the Tesla (TSLA) longs weren’t happy enough with the company’s 406% spike in the last year, CNBC’s “Options Action” bull argument on Friday was that Tesla — dubbed “the investment equivalent of crack” — is showing striking similarities to another high flying tech name, Amazon (AMZN).
“[T]here are analogs in life and this might be one of them”, market technician Carter Worth of Oppenheimer Asset Management said in its presentation. “So I want to start with Amazon. Obviously one of the great winners in the market. What I have done is gone back in time. This was a period where the stock was basing and it exploded in four months, essentially moving from $20 to $100, up about four and a half times. If you just burn that on your retina… I want to look at Tesla now. Same sort of circumstance where it bases and then also in a four-month period of October of last year to right now, this stock has moved from $30 to about $130. Exactly four months and four and a half fold. So both AMZN and TSLA, same formation, here they are. Here are are those dates. That’s kind of a remarkable thing, meaning when something’s brand new, no one’s quite sure what it is, what it’s worth and where it’s really going because it’s breaking molds and that’s what each of these stocks in a way is doing”.
TSLA is up $104, or about 307 percent year-to-date, putting the electric carmaker’s stock into a prime position on Wall Street and making it a favorite pick among growth investors.
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The Tesla model S, by itself, accounted for the entire expansion of the luxury sedan market sales: about 9%. What does this mean: not only do people want to buy an electric luxury car like Tesla’s above any other luxury car, but more people are willing to buy a luxury car than before because it is a Tesla. Bottom line, Tesla is the future of the automotive industry. Hey, they didn’t keep any other car manufacturer from making something this incredible themselves. At this point, the reverse is not true. Tesla’s model S achieved the best car evaluation score ever, voted car of the year, and is the most awesome to drive… It’s the first real shot anyone in the car industry has given the environment. Period. They are the best. Period. Be thankful that somebody did this. Be thankful that you wont be staring at exhaust fumes for the next decades, visualizing a terrible future for your children. Support Tesla, they earned it, and you owe it to the possibility of a good place to live. Think about that… no deadly smog, almost no noise, no fuel volatility and… amazing five-passenger performance!!!! The activity of the stock is small potatoes. Tesla stock has changed, gone up, quickly because the Tesla electric car and it infrastructure has changed us, and revolutionized the auto industry, that much quicker. What’s holding things back? More production? More models? That is so, so, so inconsequential: facilities, production, and models can expand at the drop of a hat. What would be tragic was to step back in time when the option that Tesla offers was not even on the table.