Can Tesla's actions grow more?

This year, 15 years will pass from Tesla (Nasdaq: TSLA) listed in the Stock Exchange. During those years, it seems that there has been an endless battle between Bears that says that Tesla's shares were surely heading to a fall and the bulls that considered that the long -term investment case was not completely reflected in the price.

As always, that remains the case.

Tesla's shares have increased by 808% in five years and 84% just since the end of October.

But with a market capitalization of $ 1.2trn and a price ratio (p/e) of 108, the current assessment of Tesla seems to take into account enormous amount of growth potential, and even then could be seen as expensive.

I like the company's prospects and I think its strong brand, patented technology and a large customer base establish it well for continuous commercial success.

But is there any point where Tesla's actions disbursed at this point given its vertiginous assessment?

Three possible drivers for a higher assessment

That depends on what I expect with the business in the coming years and decades.

I see several possible drivers to boost the tesla stock even higher.

One, that we have seen many times in the past (just look at that gain since October!), It is impulse. Participants of the scared stock market of being lost are often accumulated in Tesla shares, which increases the highest price.

But that approach based on the moment does not interest me, since I think it is closer to speculation than the investment. I prefer to invest in a company (or not) based on commercial foundations.

Transformational Commercial Potential

Could the foundations justify a higher price?

Again, I think the answer is potentially yes.

A driver could be very improved in profits. Although the company's electrical sales volumes fell slightly last year, it has a long history of income growth and I think you have the tools to continue delivering that, for example, by introducing new models.

In addition, in cars manufacturing, economies of scale are a great thing (without words game).

Tesla's strong sales mean that you could improve profit margins in the coming years, eliminating costs and also selling accessories with high profit margins. However, a risk that I see there is that the competitive market for electric vehicles could mean that it needs to compete more and more in the price, harming margins.

A third driver is an out of the vehicle's business.

Its energy storage business is already going gangbusters. In addition to that, Tesla could also launch new product lines from a driver -free taxi operation to commercial applications using its vast touch of customer travel data.

If the growth of the areas beyond vehicle sales increases profits, that could boost update Tesla.

In 108, the P/E relationship tells its own story

But much of that feels quite speculative for now.

Meanwhile, Tesla's triple digit relationship seems too high for my comfort as a possible investor.

Given the risks ranging from growing competition to a change in fiscal credit regimes in the United States and in other places, Tesla's actions deserve a price of more than one I value the century of profits at the current level?

I don't believe it.

Again, that seems to me the assessment of a speculator, more than that of an intelligent investor. So, I have no plans to buy Tesla for my portfolio.