Tesla: Forward Progress, Fraught With Risk?

What is Tesla ( TSLA )? Sure, the answer seems simple--its a maker of cars on the cutting edge of technology. But Tesla is much more than that. It makes solar panels, thanks to its acquisition of SolarCity ; and it makes power storage units for use by utilities and in homes. It's anything but simple. In fact, Oppenheimer's Colin Rusch and team note that Tesla's "business model continues to evolve" and its stock, in some ways, is a bet on its ability to "[transform] the energy and transportation industries." As a result, they contend that investors need to do two things: Track the progress of Tesla's technology and the market value of it, and build five-year financial models to "maintain a view consistent with long-term holders’ target models." With that in mind, Rusch and team take "stock of the fantasy" that is Tesla: