Over the last few days we have heard governments around the world talking about banning petrol and diesel vehicles in 20 years time. You would have thought this would play into the hands of Tesla (TSLA) but the graph seems to be saying something different. Is Tesla headed downwards in the short term despite the presence of Elon Musk? Price $339.60 @ 25 July 2017 Recent news:- The Apple Car could run traditional automakers off the road Will Tesla Inc (TSLA) Stock Holders End Up Subsidizing Customers? Tesla Model S regains top rating after software update: Consumer Reports Tesla on the Street: Analysts Recommendations before the 2Q17 Results
The hype surrounding the Model 3 launch might just be drifting away? I strongly believe in EVs in the long term but the valuation on this company is ludicrous. Price $335.07 @ 28th July 2017
Is the bubble going to burst - consider this:- There is talk the Model 3 costs more to make than the sale price Does Tesla have the capacity to deliver on orders
Never dismiss Elon Musk - he always seems to deliver but the risks and need for finances are growing stronger by the day. Will investors be as keen to stump up more cash in the short term to allow Musk to follow his dream?
I am suspicious of Musk myself, and the stock is way overpriced IMO. The stock may continue to go up, but I think sooner or later this bubble will pop. He gets lots of $ from the government, and he may not be able to count on that indefinitely. They lose $ with every sale, and they burn through tons of cash. I will be buying a put in the next day or 2 ahead of earnings.
Shorters have been caught out in the short term and scrambling to cover their positions:- https://www.cnbc.com/2017/08/03/hed...-millions-on-wrong-way-bet-against-tesla.html Still a short term sell in my book - although the graph might say differently just now. Price $347.09 @ 3 Aug 2017