Did investors react badly to Tesla's earnings?

Shares of the automaker were down big a day after the company’s announcement.

By Motley Fool Investor Beat Nov 6, 2013 6:16PM
Shares of Tesla (TSLA) dropped over 16% the day after the company announced earnings. Motley Fool analyst David Hanson is a little surprised by the market’s reaction; after all, the car maker reported some pretty good numbers, including delivering over 5,000 cars.

Then again, David knows that an investment in Tesla is an investment in the company’s future, and that future still looks good. Elon Musk has stated that he thinks his company is currently overvalued, and David admits that some of the company’s multiples are a bit high, but he thinks the potential of the company to change the way we drive is undeniable, which is why it’s a good play for the long run.
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Tags: TSLA
2Comments
Nov 6, 2013 10:44PM
avatar
Tesla will come back and be okay, no matter who is POTUS.

Musk doesn't need your approval to continue with his vision for the future.



I think conservatives don't like entrepreneurs like Musk who see a future in green energy....too bad, it's coming....now, if he was an oil man, they would probably say, "He built that".
Nov 6, 2013 9:06PM
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tesla stock is inflated by Obama because tesla owner is financial supporter of Obama.Today price is including as if tesla sells 2 million car per year with 1.5 billion profit.in reality it sells less than 100k ev a year with no profits.Also tesla has privileges like $8000 tax deductions for wealthy buyers.and California Zero emission carbon credits that shouldn't because electricity in usa is produced 66% with coal and natural gas.Battery technology is still primitive that's why ev doesnt pick up.To compete with gas electric density charge in battery must increase 5x.when that happens big auto will start massive production of ev and tesla wont be able to compete because of scale economies of big auto and brand name.$20 is fair price for tesla considering growth.However the fire in battery can also happen to gasoline car in an accident

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