TSLA

Tesla Motors, Inc.'s Secret Master Plan: What You Need to Know

TSLA Market Cap Chart

In an active session on Twitter this weekend, Tesla Motors (NASDAQ: TSLA) CEO Elon Musk shared information about the company, including that Tesla hopes to publish a second part to its Top Secret Tesla Master Plan this week. Tesla stock is up about 4.5% at the time of this writing, on Monday, as investors speculate about what this plan may entail.

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TSLA Market Cap data by YCharts .

Accomplishing so much in such a small span of time, and exceeding all expectations investors had for the company when it went public just six years ago, there's good reason to give some weight to part two of Tesla's secret master plan.

Don't get too excited

When Tesla does unveil the second installment of its secret masterplan, investors should keep in mind that the stock is already priced for significant growth over the next decade. Therefore, while investors may want to listen carefully to whatever the company unveils about its future plans later this week, Tesla still hasn't yet achieved arguably the most important step in its first master plan: bringing to market an even more affordable car. It would be difficult to overstate the importance of this third step; after all, the Model 3 is supposed to be the vehicle that will take Tesla from selling around an estimated 80,000 vehicles this year to around 500,000 vehicles annually by 2018.

Given how important the Model 3 is to Tesla's stock price, the stock is already arguably priced with speculative assumptions baked in. Therefore, no matter how impressive part two of Tesla's secret master plan may appear to be, investors should consider carefully whether it actually impacts the stock's value today. Forward-looking assumptions should be considered with a skeptical eye, keeping in mind the many risks that could arise as Tesla continues to grow.

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Daniel Sparks owns shares of Tesla Motors. The Motley Fool owns shares of and recommends Tesla Motors and Twitter. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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