Goldman Sachs: What happens if Elon Musk is the next Steve Jobs

“If Tesla Motors Inc. CEO Elon Musk turns into the next Steve Jobs or Henry Ford, Goldman Sachs sees considerable upside for the electric car maker’s stock price,” Steven Russolillo reports for The Wall Street Journal. “But that’s not a likely scenario.”

“Goldman analyst Patrick Archambault also outlined several optimistic scenarios where shares could feasibly trade well above current levels,” Russolillo reports. “‘If Tesla’s auto business were to be truly disruptive (to the whole auto industry, not just luxury vehicles), then there would be considerable upside,’ Mr. Archambault wrote. ‘To measure what is truly transformational, we need [to] draw on the experience of past technologies like the iPhone, the Ford Model-T, and selected consumer durables like refrigerators/laundry appliances/dishwashers. All of these were new technologies that were widely adopted and radically revolutionized consumption patterns.'”

“Goldman comes up with a $200 price target… some 20% below Tuesday’s closing level of $240.04,” Russolillo reports. “Not exactly an overly optimistic forecast.”

Read more in the full article here.

MacDailyNews Take: There was only one Steve Jobs. We’d be extremely lucky to get someone like him once per century.

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47 Comments

  1. I’ve actually been looking into purchasing a model S and in my research of Elon and Tesla, have noticed quite a few similarities between the late Mr. Jobs and Mr. Musk. Elon is a visionary and seems to be “bucking the trend” in the EV market. Might have to add a little Tesla stock to my portfolio…

    1. Ballmer was a master at making a complete ass of himself. He was an embarrassment to Microsoft. It was impossible to take him seriously about anything.

      Elon is a visionary, a man of integrity and intelligence. Ballmer couldn’t be further from being in the same league as him. Ballmer hadn’t contributed one single positive thing to society.

      People like Jobs and Musk have changed the world. Ballmer isn’t worthy to even be mentioned in the same sentence as these two wonderful human beings.

  2. This article is predicated on a lie. The electric car is not a new technology. Hell, Tesla isn’t even a different take on new technology. It’s rich backers and branding combined meets irrational exuberance.

        1. The Model S can be seen as an analogue to the iPhone because it is literally one of the first electric cars to show a profit and one that drivers get behind the wheel and actually enjoy driving with the huge amount of torque available to the drive train.

          It breaks new ground in that sense and is revolutionising the electric car industry by Tesla making an electric car that is desirable by drivers rather than one which was plodding, like the iPhone broke new ground in the smartphone industry.

          So you’re wrong and Logic is right. I’m sorry but there it is. You just lack the necessary vision to see beyond existing horizons. Not your fault, but still shows that you’re a visionless man, a Cook analogue if you like.

        2. How do Loockheed Martin, General Dynamics and Boeing (to a smaller extent) make their profits? Through Defense Dept. spending. Any difference as to the source if it came from the Dept. of the Environment?

        3. There is no iPhone subsidy. The consumer pays for every nickel of the price. It is a disguised time payment plan with some really silly upgrade incentives at the end of the contract, namely you can’t get the principal payments to stop, even after you own the device, so you are foolish not to upgrade. That is changing with T-Mobile and MNVOs starting to offer services for iPhones, but there has never been a subsidy.

        4. When a company produces a product for an agreed-upon price, and that product is purchased, it has earned its profits.

          When the government performs social engineering by artificially incentivizing certain products by subsidy, there’s no telling how the product would be received by the market on its own merits, and therefore no comparison.

        5. What environmental grants? Tesla got a guaranteed loan that it paid off *nine* years early.

          If you’re talking about the electric/hybrid rebates, these are applicable to many other brands than just Tesla.

          So your point is?

        6. @Higo and the other staggeringly ignorant people on this forum: It takes less than a minute to learn that Tesla had net income of $46 million in Q4Y14. In fact, cash-flow from operations was $130 million on sales of $761 million. It has cash reserves of $846 million. So, Higo, and the others here who clearly haven’t a clue how Tesla is actually performing, the company is not “very much in the red.” And please quit with the government grant stuff: Tesla very publicly paid off its entire Dept of Energy loan, with interest, last year. Tesla is for real, and Musk is a vital part of the reason.

      1. Another historical reference. Before internal combustion power took over, there were electrically powered London Taxi Cabs introduced in 1897 and operated by the London Electrical Cab Company. They were nicknamed “hummingbirds” because of the sound they made, or were otherwise known as Bersey’s, after the name of the the man who designed them.

  3. I’d like to see Tesla succeed big. Unfortunately, it faces a big challenge in climates that include winter.

    Tesla would more mirror the motorcycle season in such places, but with much higher prices throttling sales.

    Finding a solution to that would put Tesla in Apple’s league.

  4. Tesla is going down the road more parallel to Amazon, rather then Apple. Both Amazon and Tesla were/are propped up by investors but can only just do a little better then break even…

  5. Come on guys/ gals… Musk is no joke..
    He uis up there with the best of them !
    They all have / had their weknesses and strengths… Including Jobs and Musk.
    Hey there is only one of each one of us out there …

  6. Well, Elon Musk is the greatest innovator&visionary since SJ so it’s only natural this comparison is done.

    When number one (= Steve Jobs) dies then number two (= Elon Musk) takes his place, this is all just simple math…

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