discussion responses and 2 responses
Tesla Motors
Tesla Motors is the “it” stock right now in the automotive industry. Tesla was a pioneer in offering cars that run 100% on electricity rather than gasoline, and it has also diversified into solar energy, purchasing the company SolarCity. Its stock price has risen high enough in recent years that it has surpassed automobile giant General Motors in market valuation.
However, not all analysts believe Tesla is a good investment at its current price. It sells less than a 100,000 cars per year, compared with General Motors which sells around 10 million cars a year. Unlike General Motors, Tesla has yet to earn a profit.
Here are some articles both pro and con about whether you should invest in Tesla. Take a look at these articles and also try to find some more recent articles on Tesla’s stock:
https://www.forbes.com/sites/johnwasik/2017/04/14/5-reasons-why-tesla-is-bubble-priced/#d0626b26c631
https://www.smarteranalyst.com/2017/03/16/5-reasons-excited-tesla-inc-tsla-stock/
Based on what you’ve read, do you think Tesla is worth its high valuation, or is it simply priced too high because it is considered new and trendy? Would you personally invest in Tesla, or would you prefer to invest in one of the more established auto companies such as GM or Ford?
Tesla Motors
Contains unread posts
posted Oct 23, 2018 6:34 AM
Good Morning Class,
I personally believe that Tesla is priced so high because it is new and trendy. They haven’t made any money yet and don’t sell stock nearly like sow of the other automobile companies do. They are much smaller and would be much easier to take out financially than bigger companies like General Motors would. I personally would not invest in Tesla at this point in time. I would more than likely invest in General Motors. General Motors sells a line of automobiles that are more affordable as well as higher priced automobiles and therefore expands to a bigger market and has the potential for more sales because of this. They are also well established and have turned a profit, none of which Tesla has done thus far. If Tesla were to lose popularity in the market there is a large chance that they could bankrupt and go under.
Referencesmb
https://www.forbes.com/sites/
johnwasik/2017/04/14/5-
reasons-why-tesla-is-bubble-
priced/#d0626b26c631
https://www.smarteranalyst.com/2017/03/16/5-reasons- excited-tesla-inc-tsla-stock/
Felicia Carde
Module 2 Week 1
Contains unread posts
posted Oct 11, 2018 8:39 PM
While Lefton brings up good points regarding Tesla’s potential in the future, including its Model 3 production and solar technology (Lefton, 2017). Tesla still has significant hurdles to overcome, including turning a profit, as well as creating cars at a volume anywhere near where Ford or GM are making them. Furthermore, recent developments with Elon Must, Tesla’s CEO are not good. Not company likes it when your CEO is charged with securities fraud by the SEC (Securities and Exchange Commission, 2018). This move may have been an attempt be Elon to pump up the stock price, by getting investors excited about a possible stock buyback from the company.
When we look at the company’s P/E ratio other fundamentals, we find that it is very overvalued for the price of the stock (Yahoo! Finance, 2018). Negative earnings per share and PE ratio, which is much worse that its competitors. While, the company does have many assets, in the form of human capital, synergistic partnership, and excitement about its products, as well as a compelling vision, I think the company may have tried to grow too much, too quickly, and as such is too risky of a buy at the current price, and I would find better value with one of Tesla’s competitors.
References
Lefton, H. (2017, March 16). 5 Reasons to be Excited About Tesla Inc (TSLA) Shares. Retrieved from Smarter Analyst: https://www.smarteranalyst.com/bloggers-corner/5-r…
Securities and Exchange Commission. (2018, September 27). Elon Musk Charged With Securities Fraud for Misleading Tweets. Retrieved from Securities and Exchange Commission: https://www.sec.gov/news/press-release/2018-219
Wasik, J. (2017, April 14). 5 Reasons Why Tesla Is Bubble Priced. Retrieved from Forbes: https://www.forbes.com/sites/johnwasik/2017/04/14/…
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