Are you also investing in Tesla?

[Kipernicus]

I'm betting (for real, just bought at 31) that it bounces back up after the Model X reveal.

[AnOutsider]

Wait a couple weeks. I'm thinking its going to drop quite a bit in the next few weeks, possibly mid twenties. We'll see but this is good news for people who want to get in at a decent price.

Because of the article or short selling before the reveal? In any case, I got a bunch at or under 30 and I've got some limit orders in place should it drop again.

[rolosrevenge]

My limit is still in for the high twenties. I would love another drop like today.

[Fr23shjive]

Because of the article or short selling before the reveal? In any case, I got a bunch at or under 30 and I've got some limit orders in place should it drop again.

Not really based on anything other than the way the stock has been behaving for the last year. For nearly the last year its been highly rated by analysts but it still stalls at around $35/share. Its been resting around mid $20 and I think it'll make a return to that level before we get big news (factory operational, sales begin...etc).

Long-term I think the stock is a sure thing barring any really bad news but short-term I think there's a lot of volatility.

[Rifleman]

I bought my current shares at just a hare over $18 just to symbolically support the company (really wish I had put more into it now). I increased my investment at $22 after the first big dip. Yesterdays big dip is nothing more than an opportunity to increase our investments, might need to make another purchase.

[ggr]

I've gotta say that I find it very suspicious that a major firm goes directly from overweight to underweight (without going through "hold") on a tech company based purely on their perception of the long term industry, and not that particular company's plans or performance. It smacks to me of either incompetence or interference. Either way, I too see it as a buying opportunity.

[AnOutsider]

This Week's 5 Dumbest Stock Moves (CSTR, GM, NFLX, RIMM, THQI, TSLA, VZ)

A Morgan Stanley analyst is dramatically downgrading shares of Tesla Motors (Nasdaq: TSLA ) -- from overweight to underweight -- on fears that the country isn't ready for electric cars.

Knocking down his price target from $70 to $44, the analyst feels that electric vehicle market penetration will only check in at 4.5% by 2025, well off his earlier target of 8.6%.

Is this really the right call? I am starting to see charging stations show up in some unexpected places, and Tesla's more attractively priced sedan hits the market next year.

Demand for electric cars and hybrids has been a challenge in this soft economy. General Motors (NYSE: GM ) was struggling with Chevy Volt sales even before the plug-in hybrid got smacked with battery fires. However, it's a mistake to apply today's economic weakness and acceptance of fluctuating oil prices to a model stretching out for 14 years.

[Doug_G]

I've gotta say that I find it very suspicious that a major firm goes directly from overweight to underweight (without going through "hold") on a tech company based purely on their perception of the long term industry, and not that particular company's plans or performance. It smacks to me of either incompetence or interference. Either way, I too see it as a buying opportunity.

Predictions like this are intrinsically speculative. This makes them inherently unstable -- any small perturbations have an outsized effect. A small perturbation could be, say, an overblown news story about Volts catching fire.

[Robert.Boston]

I've gotta say that I find it very suspicious that a major firm goes directly from overweight to underweight (without going through "hold") on a tech company based purely on their perception of the long term industry, and not that particular company's plans or performance. It smacks to me of either incompetence or interference. Either way, I too see it as a buying opportunity.

Agreed; I added to my portfolio today at $30.50 and was up $0.50 by the close. I was hoping to buy below $30, but pulled the trigger to take advantage of what I thought to be a sharp market over-reaction to one guy's gut.

[dmckinstry]

Agreed; I added to my portfolio today at $30.50 and was up $0.50 by the close. I was hoping to buy below $30, but pulled the trigger to take advantage of what I thought to be a sharp market over-reaction to one guy's gut.

And I waited too long. Bought another 100 shares anyway.