Tesla Motors and Athlon Car Lease Announce First Model S Leasing Program | Benzinga
150 model S sold in one day
TSLA is down because the market is down. And the market is down because it hates uncertainty like whether Grease's dept problem will derail a fledgling recovery. Thursday night sounds like the real decision point.
Tesla, as a >premium< electric car maker, may depend on how people feel about the future when they decide to purchase or not. I.e. if the future looks good they'll buy the Model S, if not, then maybe the Prius Plugin or the Ford Focus Electric or maybe the Coda. Or maybe no EV at all.
2012 will be a decisive year for Tesla and EV's more generally. If EV's don't sell well this year with all the different offerings it could be bad for the whole sector.
I expect the market and TSLA will be lower this Thursday.
I could argue that increased fear about global conditions would be good for TSLA:
- Tesla products are mostly sourced in North America, so there's little FX risk and or exposure to parts disruptions if the EU economy tanks.
- BEVs depend on domestic sources for power, with no reliance on overseas imports in the U.S. (Yes, we do burn a little bit of oil to generate electricity, but we could easily cope with none.)
- Premium products have weathered the past recession very well; e.g., look at Tiffany & Co, say (NYSE:TIF), which is up about 240% in the past 3 years, compared to the NYSE composite which is up about 60%.
- Buying a product with low maintenance and fueling costs is good in uncertain times, as even if your future cash flow is constrained, you will still be able to afford to drive your car.
Good points Robert, one thing to remember is that a lot of money in the stock market are held in portfolios and a lot of these portfolios are diversified by risk/return allocation. When fears increase in the markets money tends to flow to lower risk assets and/or lower volatility stocks in various proportions. Because volatility is often seen as one measure of risk, stocks like Tesla are sold off to some degree in correlation with the general market. Value investors might find opportunities from time to time to accumulate some higher risk assets when this happens depending on how they see those fears materialize and how that would effect those stocks longer term.
Interesting that nothing seems to really be budging the stock. Brick story? Not much. Geneva show and press from that? Zilch as of yet. It's trended down a little over last couple weeks, but mostly flat regardless of whatever news comes out.
Posted the Forbes story over here, but the following quote was interestinmg:
Like Apple, which saw tremendous growth through leading innovation in new mobile devices, Tesla could be poised to similarly dominate electric cars. And since Tesla CEO Elon Musk appears committed to making this vision a reality, investors need not worry about being forced to sell out of a winner too soon. Rather, they may be able to capture over time the value of Tesla’s true potential, which is far greater than its current market capitalization of $3.5 billion. That equals less than 10% of General Motors’ market capitalization and less than 5% of Toyota’s.
No one is buying and no one is selling. The volumes have been very low.
This is becoming boring
Energy is building up. This thing should be moving wildly soon. Where is the news Tesla?
Off like a rocket this AM... still on low volume.
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