Is Tesla's stock price the result of irrational exuberance?
"As numerous commentators have pointed out, your company's finances look more like an Internet startup's in 1999 than those of a traditional automaker. Tesla has made money in only one quarter during its 10-year history, is expected to only break even this year, and make a buck a share in 2014. That works out to a forward p/e of roughly 100.
Tesla could possibly make 35,000 vehicles per year by 2015, but GM (GM, Fortune 500) and Ford (F, Fortune 500) respectively produced 252,894 and 246,585 vehicles during the month of May in the U.S. alone. GM has a trailing p/e of 11.9 and Ford 10.7. Investors have to decide where the best value lies.
what difference does it make?
just tell me when it will shift up or down
I don't care why
Personally, this company is doing the good right thing, I want them to well and I believe this is why they will do well
They are doing everything that is good for the consumer in the short and long run
Keep shorting at every high
I love selling to short, they always pay my asking price
Everyone should read "Investing the Templeton Way: The Market-Beating Strategies of Value Investing's Legendary Bargain Hunter". Fundamentals are for the other 90-95% of your portfolio. But you have to have a few of these and take on the risk if you want a balanced approach.
My company (Tesla) is not a traditional automaker. That is the whole point. We investors simply take a small portion (likely less than 5% for most) and allocate it to companies with high growth potential. The competition has a limited innovation pipeline because they are hindered by significant corporate complexity that requires cash to go to fixed cost overheads. Tesla is an innovation company. Maybe the Model S will make it, maybe not. Maybe Gen III, Maybe Gen n. I believe in the technical smarts of this company and their persistence to achieve breakthrough's in EV Technology and consumer to market. Shorts watch the stock day to day because they worry about their potential for short term gains and losses. Long Term investors look daily because of the incredible interest in this company yet most just continue to buy more shares on the dips. I don't care what this stock does tomorrow or 3 weeks from tomorrow. I care about what this company does 5 years from now. If it fails, my investment portfolio is well balanced to manage the risk. If it succeeds, it will be one of only a few in my growth potential class but it will more than make up the difference for the losses. This is what investing is about.