Tesla Motors Inc. (TSLA) is banking big on the Model X electric SUV, which is finally rolling off the production line after years of waiting.
TSLA stock has a lot riding on the success of this launch, given the stretched valuation of the stock and a forward price-to-earnings ratio of nearly 100 for Tesla stock as of this writing. But for some investors, the Model X is only the beginning of a broader line of products that will catapult this innovative carmaker to continued success.
After the Model X, there’s the much-anticipated Tesla Model III, a mass-market vehicle that TSLA stockholders hope will cement the brand as the leading electric car maker in the world after it launches in 2017.
There’s also PowerWall, a home battery unit that will allow solar power users to more efficiently store energy produced by their panels.
And after a recent Tweet from CEO Elon Musk, there are now rumors of a Tesla Model Y coming.
As for what a Model Y would mean for TSLA stock, how the vehicle would look and when production would begin, there are no details. In fact, Musk deleted the Tweet soon after it went out on Oct. 2. But it goes to show the kind of innovation that is going on at Tesla.
Of course, that’s a double edged sword as TSLA stock investors continue to demand growth from the company. That growth will come in the form of increased production for existing products, of course, but given the tremendous earnings multiple that Tesla stock currently trades for, it’s safe to say that simply cranking out more cars may not be enough to sate Wall Street’s growth demands.
Bottom Line
The Tesla Model Y may not be coming anytime soon. In fact, it may just be an honest typo that was deleted after Elon Musk fat-fingered a response on Twitter.
But given the cult of investors closely watching Tesla stock, it’s important for TSLA to keep up its innovation and keep the curiosity of traders satisfied.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP.
