Tomahawk, WI 03/14/2014 (Basicsmedia) – From Auto-dealers’ conflicts to the frenzy of a fan made ad, Tesla motors Inc (NASDAQ:TSLA) appears to have a multifaceted role. Dealers hate it, fans love it and investors are questioning how to put more money on the rising star before all the good cash is skimmed away.

Part Suppliers Are One Option;

The recurrent losses on auto-dealer talks have dulled down the company’s lackluster financial performance but there are a number of other entry points to gain from Tesla Motors Inc (NASDAQ:TSLA)’s momentum. Few analysts have suggested to go long in stock of the part suppliers like Modina Manufacturing Inc (NYSE:MOD), Magna International (NYSE:MGA). Others disagree!

But Why NOT!

The largest and most significant part in any electric vehicle is its batteries, but investing in Modina Manufacturing Inc (NYSE:MOD) does not make real sense. It is a small cap firm selling chillers for the Li-On batteries in the electric vehicles of Tesla Motors (NASDAQ:TSLA). Its chiller segment amounts to merely a meager fraction of the total revenues and Tesla is just one of its customers.

So any noticeable correlation between Modina and Tesla’s success is highly unlikely. Moreover, following the launch of Giga factory, Tesla Motors Inc (NASDAQ:TSLA) will be producing its own batteries in collaboration with large suppliers.

The electric vehicle maker is moving away from its current production cycle by backward integration and there is not much value that, an investment in parts’ supplier would fetch for buy and hold investors in the end. A better idea is to take a position in any one of the current or prospective collaborative partners like Hitachi (OTCBB:HTHIY) and Panasonic (OTCBB:PCRFY). The later of the two has been supplier partner of Tesla Motors Inc (NASDAQ:TSLA) since 2011 and under its renewed vows it will be supplying over 2 billion Li-On cells to the company over a period of 4 years.

Better Still Invest In Partners with Equity or Debt Stake In Tesla

Given that Panasonic (OTCBB:PCRFY) committed to invest another $1 billion in the batteries joint venture it would be easier for investors to keep an eye on return on equities or debt investments in Tesla motors Inc (NASDAQ:TSLA). Investors release updates on milestone achievements regularly. However, Supplying client specific revenue growth or return on equity from a key account is something that a small cap stock will never do for cost and benefit’s sake. Clearly, auto-partners are a better and cheaper way to joining the Tesla Motors Inc (NASDAQ:TSLA) ride to the star!

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