Quote:
Originally Posted by CRCRFT78
I saw the reports this morning about the Tesla vehicle battery fire and the reaction the market had against it. Didn't watch the whole news report but does anyone have an opinion on this and how it may or may not affect your future investment decisions. How some may handle this negatively or positively and the influence it may have on your buy/sell decisions.
I DO NOT hold a position in Tesla but based on the little bit of information I have heard about this, I may look at it as a buying opportunity if I did hold position in their company.
Any opinions?
|
TESLA (TSLA) is a "priced for perfection" stock.... it's run way ahead of the actual fundamentals --- i.e., it's P/E ratio (price to earnings) is a big "DASH" -- because it has no earnings..... it might in the future - but as of this writing = it does not. It currently is valued at HALF the market value of General Motors (GM)... which has a P/E of 12.66 (so P/E Ration is the stock trades at 12.66 TIMES the current earnings).....
When a stock is priced for perfection -- a small "hiccup" can have a LARGE inversely disproportionate effect on the stock. People tend to be lemmings and they panic 'enmasse'.... They really don't "invest" in the shares as much as they gamble in the price appreciation and the first time they have an "event" -- people run for hills.
I personally don't own Tesla --- and frankly --- I'm not really sure what to make of it as a STOCK --- which is completely different than it as a company!
I like the company -- but thought their first car was an overpriced "cult" car that had relatively poor quality - and was pretty much useless.... the "S" on the other hand is very high quality -- is really a neat car -- and is selling like hot cakes.
BUT --- here's my issue with the STOCK --- is it gambling with it's pretty meteoric run up in price.... and will I get crushed if they have earnings misses or come out with a new model that doesn't sell quite like everyone "expected". OR --- Do I really believe they know what they're doing and it's all uphill from here.... So then my choice is to buy FORD which was cheap - and collect a dividend...
NOBODY KNOWS WHAT THE FUTURE IS..... your guess is every bit as good as mine -- or anyone else's that THINKS they know.
If I was younger --- and had some spare dough --- I think I'd be a buyer on the dip. I wouldn't buy much (it's ALL RELATIVE)... for me -- that might mean I'd put 100K (or maybe I'd just buy 500 shares -- something like that) into it.... someone needs to make those calls based on how much they have to invest and how much they can afford to gamble.
If you invest in a stock like this -- you're just gambling -- it's a new company -- it's new technology (the batteries) and you just don't have a crystal ball.... but you might be buying a company that just turns out to be a leader and grows like crazy and has big earnings --- and who the hell knows. Sometimes it's just FUN to own stuff like this. WTF. Nothing wrong with that. Just don't put your kids college funds into it.