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Are you also investing in Tesla?
- Thread starter Fr23shjive
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- Tesla Inc.
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.
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.
Thumper
Active Member
Steph
Member
This is becoming boring 
E=MC2
Energy is building up. This thing should be moving wildly soon. Where is the news Tesla?
E=MC2
Energy is building up. This thing should be moving wildly soon. Where is the news Tesla?
Steph
Member
I expect that we're going to live in the $33-$35 band for a while. Seems to be resistance above and below that band. I'm not expecting a breakthrough on either side until there's news -- good or bad.
Steph
Member
I agree.
We need some good news. Why are they so quiet? Please, give us entertaining news Tesla
JRP3
Hyperactive Member
I need some bad news so I can buy more :wink: I was really expecting a dip below 30 at some point before the S launch.
Steph
Member
Steph
Member
Steph
Member
