Did they discover a cure for all diseases? No
Is a company with $1.4B in sales worth a market cap of $20.5B? No
TSLA makes cars....someday they will grow into their valuation....Maybe in about 3-5 years.
You are viewing Tesla as just a car company and not seeing the whole picture. The stock is at this level because investors believe that TESLA will be the first American car company in 90 years to be successful. They will be the leaders in the EV space though out the world. When you take the top rated car, best built car with the highest in customer satisfaction with a vision for the future and a CEO who can deliver that vision you can justify the price.
Tesla has a grip on quality and innovation for the future
no doubt--Musk is a rare breed...
but yes, the stock will begin its precipitous fall sometime not too far away
and late-coming longs will be stunned
even 90 to 100 is a great price for the stock...for now
anyone that got in early...20--40... should be more than happy and will be safe in the long run
but if you got in recently or plan on getting in or adding
your joy will be short-lived
there might be some more upside, but no more than 1/4 of what the coming downside will be
so if you do see 190 (20 up, you will see 80 down)
110 will be right around the corner
if 173 was the top
100 or lower will be the next bottom
72-75 is where it should be. Model X doesn't ship until early 2015, no clue on what date or cost Model E will be but it may require new, innovative and cheaper batteries to do it. I can't see 40k sold next year either. Nothing really lines up to the fantasy being sold on CNBC. Musk even says "our goal isn't profitability but rather good products."
They discovered a cure for pollution from petroleum products which shorten our lives and lead to the disastrous effects of climate change. Railroad stocks went parabolic in the mid-19th century when they were new. So did Bell Telephone in the late 19th century when phones were new. So did General Motors when it was new in the early 20th century. Stocks of this sort go parabolic because stuck in the mud thinkers who do not understand the coming technology at first fail to buy shares in such companies or even short them. That keeps share prices low for a while. Then as it dawns on people one at a time that something really big and important is happening, the share price accelerates. Yes the moves can appear parabolic and justifiably so. Those who recognize this will pay $169 today despite modest fundamentals, so as not to have to bid over $1000 a few years from now.
Did they discover a cure for all diseases? YES the answer to the industrial revolution and the elimination of some of the most damaging byproduct in our society. We clean up transportation then food and we come a long way back to undoing the destruction of mankind
in March, tesla started making 500/wk.
In recent factory tours, tesla owners are told that the plant produces a little over 500/wk with two shifts.
Stock is through the roof since Q1 earnings. Beyond that, what is the catalyst?
genau...which means exactly.
it doesn`t mean that Tesla and TSLA isn`t great
it just means that the way that price-action-sentiment-slam-rise
MUST be accompanied with an adjustment
or as they call it
in Kindergarten, they call it fall back growing pains
I know it's hard to accept ah? stocks shouldn't go parabolic but when they do, the best option is to deal with reality. Living in denial robs you and your family of your future.
Sentiment: Strong Buy