What Comes First - TSLA Or Tesla?

My interest in Tesla (TSLA) stock was significantly boosted when I read this thread on the Tesla forums several years ago with people selling off Ferraris, Porsches, Jaguars and other luxury cars once they test drove and owned a Tesla. Before that I only had a very small investment I made in Tesla in 2011 prior to the Model S launch. Now Tesla stands as my wife's and my largest individual stock holding.

A few weeks ago, Barrons reported research from Jefferies that Tesla owners show exceptional brand loyalty. Many will not consider any other car brand and most will buy another Tesla.

A recent poll at the Tesla Motor Club forum asked members to state if they own a Tesla and how much stock they own. The results are here. Using the data on which that chart is based, the average number of Tesla shares owned by Tesla owners is 3800, while average shares owned by non-owners is 1400.

Also, completely non-scientific observations show that Tesla ownership is not just from prior luxury car owners. Test driving a Tesla has made owners out of people who have never bought a new car, people who owned old econoboxes and all kinds of folks who would otherwise have never bought a luxury vehicle.

Some quotes:

"My roadster replaced a 1994 Jeep Grand Cherokee with 150k+ miles and broken everything which I sold to a friend for 800 dollars and it promptly blew up a few weeks later."

"My 85D replaced a 98 [Toyota] (TM) Camry that i only paid 1k for. The S cost more than 100x as much as my last car."

"prior to buying a Tesla I owned a 2002 Honda (HMC) Civic (bought used in 2006) and a 1971 Datsun 240Z (bought used in 1977). I now own a 2013 Model S and a 2015 Model S, both bought new."

I'm going to be one of the first in line for a Model 3. At this point, it is pretty much a certainty that there will be a mad dash for pre-orders for the Model 3 as soon as it opens and based on the Model S owners, who came from everything from beaters to Ferrari's, the Model 3 should appeal to nearly everyone.

What is it about Tesla that makes people crave it so much? I was recently reminded about an article I wrote almost two years ago when Carnegie Mellon requested permission to distribute it to some executive MBA students. It talked about innovation in the auto industry and why Tesla is a disruptor.

And what was true two years ago is still true now. There is always talk of "upcoming" competition for Tesla. However, that has yet to materialize and the only other long-range EV in sight is GM-s (GM) Chevy Bolt, which is not really a Tesla competitor, unless you also think the Chevy Sonic competes with the BMW 3 series.

If it wasn't for Tesla announcing "autopilot", we wouldn't have had every other automaker come out of the woodwork with their own "autopilot". Maybe the Bolt will hit the market before the Model 3. Maybe someone else will have autopilot before Tesla. But nobody else currently has the allure of Tesla or the perception of being a bleeding edge automaker.

There were always phones with better specifications than the Apple (AAPL) iPhone at every point in Apple's history and Apple was often late to add features like 3G, LTE, NFC, but checking a specification box is not as important as the overall perception of a product. And as far as cars go, Tesla is second to none for both customers and media. Here is a list of awards that Tesla has won and the Model S is second to none in achievements.

So what comes first? Tesla or TSLA? It doesn't matter. One leads to the other and such kind of brand loyalty is a strong indicator that it is here to stay. After all, if some other company held on to people's money for years on end for a delayed product like the Model X, the people would be screaming bloody murder. But the perception is that it is worth the wait. And that's all that matters. Be prepared for more Tesla -> TSLA converts as the Model X hits the road later this year. And even more TSLA -> Tesla converts when the Model 3 preorders start. This "vicious" cycle is likely to keep Tesla stock going for a while.

I would use the current dip from Greece/China problems as a buying opportunity.