This is epic. It surprises me that the markets care more about the short-term profit adjustment announcement than this long-term epic plan. I picked up a bunch of TSLA this morning to take advantage of it being down 7-12%, but I'm confused why the stock is down on such incredible news.
This company is going to take the auto industry by storm. And I bet they partner with Google circa 2017 to build self-driving electric cars that can navigate across a continent without supervision.
And at the same time, all the other auto makers are aware but somehow unable to move. They cancel their projects [1] even as Tesla expands and prepares to go further. Incredible that they're going to be taken "by surprise" as Tesla ramps up production in the next few years.
I am a Tesla shareholder, so I definitely believe in what they are doing, and think they are a revolutionary company. However, it is more than just the short-term revenue adjustment affecting the stock price - in addition to revenue drop, Tesla also announced an additional stock offering[1], essentially diluting existing shareholders.
With 105M shares currently outstanding, and Tesla planning to offer 4.34M shares, 4% of today's drop is likely just the market adjusting for upcoming dilution.
As a (very very minor) shareholder, I am glad they are doing this - relying on the current cash position and cash flow to get to profitability would have been cutting it too close for comfort, IMO. From an investor's perspective, I view Tesla as not much different than investing in a biotech - it is likely either going to be a huge hit, or a huge miss. The difference (for me) from a biotech is I feel I can understand and follow the tech in Tesla, and I believe in the company.
You're surprised that the market cares more about short-term profit than long term gain? No offense but have you been living under a rock for the last 20 years?
I'm new at this. Who put money into TLSA expecting a short-term positive return, though? That's what I don't get. Google, or Apple, I could understand. Tesla? Seems silly.
Buying stock into Tesla should definitely be a 5-10 year move. I think Tesla will become the next Ford/GM of US (Ford as in the initial market innovator, GM as in the eventual market leader), simply because they are the ones moving the market forward, and the others don't really have the ambition or even the know-how to catch-up or surpass Tesla in making great electric cars.
Well, I can see people assuming Tesla's plan was to get bought by some major car company within a few years. Those people are probably realizing that isn't the plan about now, and getting out.
This company is going to take the auto industry by storm. And I bet they partner with Google circa 2017 to build self-driving electric cars that can navigate across a continent without supervision.
And at the same time, all the other auto makers are aware but somehow unable to move. They cancel their projects [1] even as Tesla expands and prepares to go further. Incredible that they're going to be taken "by surprise" as Tesla ramps up production in the next few years.
[1] http://inhabitat.com/toyota-cancels-productions-plans-for-th...