The case against Tesla

wouldn't the last sentence describe most exchange listed corps? it's all about whoever wall street is in love with, not the stock price and valuation.

 

There is plenty of money to be made in the volatility of TSLA. If you have the money and the conviction that TSLA will fall then sell short. If you are holding the stock and want some income sell a call. If you are looking for more volatility check out the oil patch.

Investors looking for dividends shouldn't be in TSLA. Those looking for appreciation and bought early got it 10 fold. For any stock the key is knowing when to get in and when to get out.

 

just like musical chairs . . . .
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yep. it's a great game if the music stops at the right time.

 

We don't know what the end game for TSLA looks like, if it comes down to that.
Maybe GM buys it and the stock doubles ...who knows where its headed.

(better yet, say Apple buys them out...happy ending indeed...and that could make sense too)

 

Several very negative articles or commentaries on TESLA's financials have followed the publication of their latest earnings reports. Even comparisons to DeLorean!

 

a lot of haters hoping to take them down.

 

A lot of previously burned short sellers too.

Bob Wilson

 

good point, and probably some current ones, knowing the collision that is wall street.

 

But have you read the quarterly report?

The articles or commentaries weren't so much on the product as they were trying to see how the numbers reported would affect how much cash would be burnt in getting productions to a certain level, how much effect other car makers planned similarly priced/capable offerings would have and what the impact of the recent poor performance in China and the "cultural" problems there would have on the 5 year out company prospects.

If you don't have the right numbers now, the only way to justify the current stock price is to have enormous confidence and optimism for the future.

Is it a cult or a real company?

 

all speculation. show me a company on wall street that is built on earnings, and whose multiple reflects reality. they said the same thing about amazon on 60 minutes a hundred years ago.

 

As much love as Tesla gets, their quality is not that good. 15% drive motor failure rate? Traditional car companies get killed with 1% failure rate of ICE.

 

where does that 15% info come from? who's making their motors?

 

Early motors were creating an unpleasant noise. Tesla replaced these and had their engineers pour over the causes.
More recent motors have not exhibited this noise.

If you call an annoying sound that doesn't reduce reliability, performance or economy a failure, I wouldn't be surprised by that number.
Actual failures where the motor stopped working are almost non existent.

Just look at the number of Tesla owners who say they would buy the Tesla again. Highest of any car.

It is a young car company, however, they are learning very fast and improving their car very fast.
Some of the big guys have taken notice and are responding.
Some are doing the minimum they need to to get by.

 

1% early failure rates are enough to attract class action lawyers. I've followed a class where a less than 10% failure rate over 10 years resulted in a settlement.

 

I'm not arguing that. Do you call a motor making noise, a failure?

 

no. that's why i don't like flamers.

 

If you watch Shark Tank, or even if you don't, the pattern has always been for the pioneer to break ground with a new product, and then for others to use their financial muscle to take over the market. Big Blue tried it on Apple in 1984, but Steve Jobs was able to keep Apple alive long enough to get a few steps ahead of them. There are no guarantees for Tesla to be able to stay ahead of GM.

 

Don't know why Tesla even bothered to try .....



.... everything's gona eventually fail anyway ... why bother .....

might as well just give up now ...
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