Tesla (TSLA) Model 3 Launches Next Week

The long-awaited Tesla Motors (TSLA) Model 3, hailed as an electric car for the masses, is due for its unveiling next Thursday, March 31, Investor’s Business Daily reported.

Priced at $35,000 before incentives—half the cost of Tesla’s Model S and Model X—the Model 3 is meant to go up against the likes of the BMW 3 Series and other gas-powered entry-level luxury vehicles from Volkswagen‘s Audi and Daimler‘s Mercedes-Benz.

Hopes for Tesla’s ability to build and sell a sizable number of Model 3s have helped push up Tesla’s market capitalization to five times the California startup’s annual revenue. How well the Model 3 does—along with whether Tesla can build it on time (starting in late 2017) and get battery costs low enough to make the car profitable—are key issues that investors will be watching.

Analysts on the whole are mildly positive on Tesla. Of 21 tracked by Thomson Reuters, five call it a strong buy, four a buy, and six rate it at hold or underperform.

TSLA was recommended in Cabot Stock of the Month in December 2011 at 29. Shares closed Thursday at 228.

Stock Picks


This stock could rise 50% before becoming fairly valued.

This hot technology company is growing like a weed, thanks to products that speed up cloud communications.

This stock is somewhat well known, but far from well loved.

Cabot Wealth Advisory

Targeting Upside in PayPal Stock

By Jacob Mintz on October 25, 2016

PayPal stock is trending higher after last week’s strong earnings report, with plenty of upside. Here’s how options traders can take advantage of that potential.Read More >

Nine Characteristics of Great Growth Stocks

By Timothy Lutts on October 24, 2016

Recommending great growth stocks is our specialty at Cabot. But so is education--we want you to be able to find growth stocks on your own too. Here are nine characteristics of what to look for.Read More >

How to Find Great Growth Stocks in a Scary Market

By Paul Goodwin on October 21, 2016

Even in today’s scary market, there are great growth stocks out there. Here’s how to find them—and how to avoid the kind of losses that can haunt your portfolio.Read More >