Is Tesla Motors an Attractive Investment?

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With shares of Tesla Motors (NASDAQ:TSLA) trading around $231, is TSLA an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Tesla Motors designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. The company also provides services for the development of electric powertrain systems and components, and sells electric powertrain components to other automotive manufacturers. It markets and sells its vehicles through Tesla stores as well as over the Internet. Consumers and companies are looking to save at the pump, and what better way to do so than with electric vehicles?

“We are disappointed in the actions of the [New Jersey Motor Vehicle Commission] and the Christie Administration, which come on the heels of more than nine months of unexplained delays in the issuing of a new sales license for Tesla, despite our numerous requests, calls, and letters,” Tesla Motors said in a statement released Tuesday on its website upon receiving word that the administration of Governor Chris Christie rolled back its decision to delay a proposed anti-Tesla bill that’s backed by none other than the New Jersey Coalition of Automotive Retailers.

Tesla’s spat in New Jersey is by no means unfamiliar territory for the company, which has waged legal battles in several states over its unique business model that involves selling its vehicles directly to consumers and bypassing the conventional dealer format. Naturally, dealers are quite displeased, and groups like NJCAR have spent millions on efforts to put legislative restrictions on the company and prevent Tesla from selling its vehicles in various states.

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