Tesla’s Rally Is Running on Fumes: TSLA

Tesla (TSLA) CEO Elon Musk may seem to be using his entrepreneurial super genius for the forces of societal good, but he's making some powerful enemies. Last week General Motor's (GM) VP of Global Development told AP the company is working on an electric car with 200 mile range and a price tag under $30,000. The fact that GM refused to say when or even if such a product would be mass produced goes a long way towards explaining why Musk doesn't seem too concerned about the competitive threat.

Judging by shares of Tesla the stock market is convinced the electric car industry is going to be huge with or without Detroit. Despite electric cars accounting for a mere 0.3% of total U.S. auto sales, shares of Tesla are up 430% in 2013. General Motors rakes in more than 100x as much revenue as Tesla but is only about twice the size in terms of market cap. The stock market seems to giving Tesla credit for selling cars to people who haven't even been born. (more)

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