Which Elon Musk Stock Is the Better Buy: Tesla or SolarCity?

November 15, 2013 – 02:01 pm

Elon Musk CeoSource: Tesla Motors.

Billionaire and entrepreneur Elon Musk has accomplished more by the age of 43 than most people would ever dream to achieve in a lifetime. Today, he has a long list of labels that follow him around, including co-founder of PayPal, CEO of both electric-car maker Tesla Motors and rocket and spacecraft company SpaceX, and chairman of solar energy system company SolarCity . Some of his current goals include sparking an electric-vehicle revolution, enabling multi-planetary life, bringing the Internet to all parts of the world, and replacing high-speed trains with a pod-shooting tube called the Hyperloop.

Clearly, this dude is one smart cat. Heck, he dropped out of a Stanford Ph.D. program for high-energy physics after two days, when he realized the program seemed to be limiting his ambition. Shortly afterward, he sold the first company he founded, Zip2, to Compaq, and netted $22 million for himself - the beginning of a fortune that would balloon to an estimated net worth of $12 billion today.

With this sort of track record, some investors might be interested in the companies Musk is running just because he is running them. Fortunately, two of them are publicly traded: Tesla Motors and SolarCity. While his involvement at Tesla as CEO is much greater than his time spent at SolarCity as chairman, both companies are core to the future he imagines: electric vehicles everywhere and a proliferation of affordable solar panels paired with stationary energy storage, or batteries storing energy.

Solarcity Copper Ridge SchoolThis raises the question: If you were to invest in one of Musk's two publicly traded businesses, which would you choose? Here, two of our analysts discuss the case for each stock.

The case for Tesla
Daniel Sparks: While Tesla's revenue today primarily comes from sales of electric vehicles, the company is strategically positioned to also benefit from the fast-growing residential solar market. Indeed, Musk said in Tesla's most recent quarterly conference call that the company plans to unveil its Tesla home battery, to be paired with solar panels, soon.

"We have the design done and it should start going into production probably in about six months or so, " Musk said.

Best of all, if the wild success of Tesla's Model S is any indication of how its planned Model 3 (a model planned to cost half the price of its Model S and scheduled to launch in 2017) will perform in the market, Tesla might not even need the energy storage market to continue to grow revenue at rates around 50% annually for years. Energy storage could simply end up being the icing on the cake.

SolarCity is bringing solar energy to the masses. Image source: SolarCity.

The case for SolarCity
Travis Hoium: Electric cars are reinventing the way we think about vehicles, and solar energy is revolutionizing the way we think about energy. At the heart of that is SolarCity, which is turning average electricity consumers into electricity suppliers, turning a century-old electric industry on its head.


Source: www.fool.com

You might also like:

Stock Basics: What is a Ticker Symbol Definition and Meaning
Stock Basics: What is a Ticker Symbol Definition and Meaning
Another sunrise
Another sunrise
Samsung Galaxy Note 4 Smart Case, Spacex Dragon Berthed At Iss Luxury Leather Flip Case Cover With Stand Feature for Samsung Galaxy Note 4/ Note IV/ N9100, Original Design And Made By PhilipHayes
Wireless (ACESR)
  • Designed Specifically for Samsung Galaxy Note 4 N9100
  • Made of genuine leather with customize photo pattern design printed, custom personalized photo acceptable
  • Full protection for back and front of your iPhone£¬Support hands free video watching with self stand.
  • Smart Wake Up / Sleep, Without card slot, Without belt clip
  • Built-in stand feature for convenient viewing
iPhone 6 Plus Smart Case, Spacex Dragon Berthed At Iss iPhone 6 Plus 5.5inch Full Body Protector Leather Flip Folio Case Cover,Original Design And Made By PhilipHayes
Wireless (ACESR)
  • Designed Specifically for Apple iPhone 6 Plus With 5.5 Inch Screen ONLY, NOT For Regular iPhone 6 4.7inch
  • Made of genuine leather with customize photo pattern design printed, custom personalized photo acceptable
  • Full protection for back and front of your iPhone£¬Support hands free video watching with self stand.
  • Smart Wake Up / Sleep, Without card slot, Without belt clip
  • Built-in stand feature for convenient viewing

Related posts:

  1. What is SpaceX in McGregor?
  2. What is SpaceX Dragon?
  3. What is SpaceX Rocket?
  4. What is the SpaceX Dragon?