It was not an earnings beat that propelled the high tech auto maker up after hours, nor was it free cash flow–which was a horrendous negative $595 million last quarter. The stock is rallying on nothing but the moxie of their CEO, Elon ‘indeud’ Musk.
The pop is modest. Price is back where it traded before Consumer Reports threw shade on the Model S with their infamous Rattlegate report, which they have since rescinded. But what gets me excited is seeing the shares trade higher on a miss.
Usually it goes the other way, at least in my life. Your company beats analyst expectations, forward guidance is robust, but the stock trades lower. This happened to me so many times I stopped asking why. For once, I am the beneficiary of upside-down logic, and I wholly attribute this twist of fate to the management team over at Tesla.
We got a headline quote from the conference call:
“Cars that are not autonomous will have negative value. It’ll be like owning a horse.” – Elon Musk, November 3rd, 2015
So while the company is a giant money pit, investors know we have that rare cocktail of technology, leadership, and opportunity which can make a big idea work. You should have no qualms about letting these people expend resources. The changes they bring forth will reverse several generations of destructive auto policy and infrastructure development.
As a citizen of the world it is your moral obligation to own Tesla shares. You should also spread the word like a proper evangelist. Tell you mom to stop giving money to that glowing-eyed sociopath Joel Osteen. Demand she pay her penances to Tesla Motors instead.
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You’re either high or retarded, I can’t quite tell.
elaborate
“So while the company is a giant money pit, investors know we have that rare cocktail of technology, leadership, and opportunity which can make a big idea work. You should have no qualms about letting these people expend resources. The changes they bring forth will reverse several generations of destructive auto policy and infrastructure development.
As a citizen of the world it is your moral obligation to own Tesla shares.”
Sarcasm doesn’t translate to text well so I wasn’t sure if you are being serious or not. If that is your opinion that is fine, but I have always read your blog and thought of you as an intelligent independent thinker. If you are a musk-ite, so be it, but this $TSLA circle jerk has just become too funny.
I’m being a touch over-the-top but I do believe this company is the catalyst for lots of changes that otherwise would not have happened. When they go out and take the lead in areas like electric and autonomy, it forces the more established players to pivot.
I agree with you Raul. Just not the “moral obligation to own Tesla shares” part. 😉
typical liberal with no tolerance for any other point of view
In 20 years I will tromp on my supercharged V8 gas pedal and pass all of the autonomous autos. Imagine the horrified look of all of the sheep as their line of cars reshuffle.
Just like the market algos collude to snuff out breakouts, so too will autonomis vehicles. You will learn. You will learn to conform.
autonomous cars could probably go way faster on highway since the speed limits would become irrelevant
Autonomous cars for their autonomous lives. Generation cloned sheep
Yes, it is moving into the future. Another Elon Musk initiative, https://en.wikipedia.org/wiki/Hyperloop,
Total American combat deaths for the entire Vietnam war 47,424, total american deaths in driving accidents Last Year, 32,719 which is one of the safest years on record.
I like road trips, and heck I have a motorcycle, but we’re in denial.
“Relax pal. First lesson in business is don’t get emotional about stocks – it clouds your judgment.” – Gordon Gekko
Wise words.