How will that make you feel? Only 10 Bil. current mkt cap for this news giant. It's going.
Think about that for a minute.
Written on his Real Money site earlier today:
The best known stock on this month's list is Tesla Motors (TSLA). The electric-car company has generated a lot of buzz lately by announcing 325,000 orders for its new Model 3. That's pretty exciting, as is the car itself.
However we should temper our excitement by the fact that even the most aggressive analysts don't see TSLA meeting all of that demand until at least 2018's end (and many think it will even take longer).
And while Tesla has so far not announced plans for any new debt or equity issue, Barclays analyst Brian Johnson thinks the firm might have to raise as much as $3 billion to finance the new car's rollout. He also believes we won't see significant Model 3 deliveries until 2019.
Also note that Tesla hasn't been profitable over the past 12 months. And even if the firm hits analysts' average earnings estimates for the next two years, TSLA is currently trading at 195x anticipated 2016 earnings and 80x 2017 earnings.
In other words, the stock is priced for absolute perfection -- and that's something rarely attained in the corporate world. One production delay or earnings miss and TSLA could easily turn into a "torpedo" and blow a huge whole in your portfolio. Consider Tesla's move today to recall 2,700 SUVs.
I just bought puts. Looking for a move down to $230 area by the end of the week.
Probably this weekend.
Check the chart and today's action and hop on. This rocket is about to take off. Thanks me later...