Message Font: Serif | Sans-Serif
No. of Recommendations: 6
Tesla Model 3 Cost of Ownership Slightly Cheaper Than a Camry
* The bottom line: Model 3 is a superior car (electric, safer, Autopilot) compared to a Camry, and is slightly cheaper to own and operate over 5 years.
* Average all-in cost per mile for a Model 3 is $0.46, compared to the Camry LE at $0.49, and Audi A5 at $0.80.

This basic valuation gap - better product for less total cost to consumer - is one of the reasons why TSLA is selling faaaar more cars than equivalently priced luxury sedans (BMW, Mercedes Benz, Audi, etc) - but also will soon be selling more than the more pedestrian Toyotas and Hondas (I was a lifelong Honda Civic and Subaru Outback duuuude).

So pay attention to the long-term exponential sales as your clue that TSLA is by far a better and safer stock to own than many companies that are perceived (incorrectly) as bigger, safer companies like GM, GE, big banks, etc.

Recall which companies did well in the previous recessions - was it the “bigger and safer” companies?

Or was it the few top TMF recs like NFLX and AMZN and TSLA which continued to GROW sales unlike all the other companies - kinda like this:

Note - those top TMF rec’s stock prices got hammered WORSE than the average US companies who were all losing sales bigly and many enough to go belly up like GM…

So don’t let stock price ever be a proxy for how well a company is doing - or isn’t - in the short term.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.