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Tesla Proves It’s Safe as Well as Sexy

TSLA stock teslaTesla Motors (TSLA) stock has been one of the fastest-moving players on Wall Street in 2013. Tesla stock has soared roughly 340% since Jan. 1 as TSLA has made a habit of squeezing out the short sellers and bearish traders at every turn.

(That includes me, by the way, after I made a bonehead bear call on TSLA ahead of earnings.)

But while TSLA stock has proven itself on Wall Street and the Tesla Model S has proven itself to car buyers with the highest-ever rating for an automobile by Consumer Reports, one question has been nagging at some:

Is Tesla safe?

Well, the National Highway Traffic Safety Administration solved that mystery today with a five-star safety rating for the Tesla Model S sedan. As Tesla’s press release states, that rating isn’t just overall, “but in every subcategory without exception” and its overall Vehicle Safety Score provided to manufacturers came in at a 5.4 — the highest safety rating of any car tested by the NHTSA.

So that means TSLA stock is soaring, critics love how the car drives, consumers adore the savings on fuel and regulators consider the Tesla Model S one of the safest rides on the road.

Is there anything Tesla can’t do?

Other auto makers Honda (HMC), Toyota (TM), General Motors (GM), Ford (F) and Nissan (NSANY) should take note here. TSLA and its Model S is breaking the mold for success and it would be very wrong to write off Tesla as simply a fad or a niche product given the wide appeal.

Sure, TSLA cars are a bit pricey. And yes, Tesla stock is a bit frothy after strong earnings a few weeks ago pushed it up by double-digits in a single session yet again on a short squeeze.

But this kind of buzz and widespread appeal is obviously translating to real sales as the company continues to enjoy a big backlog — and most importantly, operations that have started turning a profit much faster than Wall Street expected.

Related Reading on TSLA

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.

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  • Scattel2z

    Of course they did, they over engineered every part of the car. The paranoia of Tesla’s design team has paid off. There’s only one other company out there with a matching design philosophy and that’s, wait for it, Apple.

  • Bob

    Would Ford, GM Toyota and and a bunch of other losers pay someone to blog against Tesla to favor the sale of their antiquated designs..of course! Would the middle eastern investors pay to blog against Tesla to favor the use of their oil..of course! F em anyway

    • Alexander Shaskevich

      I got banned from Seeking Alpha because I asked what is the national origin of a person who wrote an article trashing Tesla.The name was not European. Middle East Investors might put out a Fatwa on Elon Musk. Look what is happening in Egypt. What is going to happen to the price of oil?

  • long.tsla

    Oil? What’s that?

  • http://www.facebook.com/hammad.tauqeer.7 Hammad Tauqeer

    (Pennystockchief*dotcom), is the ideal place for balancing decision making on GM stock

    • shpinkis

      whats this have to do with anything here…

      • ihavebear

        for one to rise, others must fall.

  • JPJ

    You realize that is a picture of a car they do not even make anymore?