One of the greatest corporate success stories of the past few years is Tesla Motors (TSLA). Not just because its share price has made investors like me very, very happy during the past five years by accelerating to approximately 770% gains, but also because its genius CEO Elon Musk has been able to prove nearly all of the haters wrong on so many fronts that it has become almost comical.
First, Musk warned the shorts that they would be in for a “tsunami of hurt,” and they were. Then he said Tesla would be profitable, and in May the company reported its first-ever profit. Now, Musk is doing what he does best, making news by not only what he has planned but how he announced it.
In his Twitter feed on Thursday, the billionaire business man announced that he was searching for big-brain talent to help him develop an autopilot system for Tesla vehicles:
“Intense effort underway at Tesla to develop a practical autopilot system for Model S”
“Engineers interested in working on autonomous driving, pls email email@example.com. Team will report directly to me.”
Leave it to Musk to announce the development of a revolutionary technology via of another kind of revolutionary technology, the social media site Twitter.
Think about this for a moment, as it’s very revealing. In just one action, Musk showed why …
- He thinks differently than most CEOs.
- He’s unafraid to be transparent about his plans for Tesla.
- He embraces new technologies of all sorts, as he knows that’s the best way to find the minds capable of accomplishing his needs.
Ah, if only all CEOs were like Musk, there would be a lot more happy investors in this world.
Now, while I wouldn’t just buy a stock based on an interesting tweet by a CEO, I do think that this small example of how Musk thinks is something you, as an investor, can bet on.
If you want something a little more solid, Deutsche Bank on Wednesday raised Tesla’s price target to $200, with analyst Dan Galves writing, “We believe that the company is on-track to modestly outperform Q3 margin expectations.”
The only quarrel I have here is the rather modest price target. My personal target is much higher, and I wouldn’t be surprised if Tesla shares traded between $250 and $300 over the next 12 months.
So, I say buy TSLA and put your money on autopilot — and keep driving alongside Elon.
As of this writing, Jim Woods did not hold a position in any of the aforementioned securities.