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.
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.
[1] http://ir.teslamotors.com/releasedetail.cfm?ReleaseID=709221