Time to Stop Talking About Tesla?

by JDH on May 25, 2019

I am growing bored, and so I may stop talking about Tesla.

Or not, it’s hard to say, but I will say this:  Tesla closed at $190.63 on Friday, the same level it was trading at on January 12, 2015.  So, in four and a half years, Tesla’s stock has not moved.  (It’s moved, but has returned the same starting point).  For a growth company that will change the world, that’s not much of an investment.

On January 16, 2019 Tesla traded at $352.14.  For those of you keeping score, that’s a decline this year of over 45%.

This is not a growth story, it’s a “get ready for bankruptcy” story.

Am I sad that the world will not be moving to electric cars as quickly as hoped?

No, I am not sad that I will not be driving a fancy golf cart.  We burn coal and natural gas to generate the electricity to power these cars, so they are no greener than gas cars, so until we adopt Generation IV nuclear reactors to provide safe power, this is all much ado about nothing.

I hold a small number of puts, but the fun is out of it; it’s not fun kicking someone while they are down, so I may say no more on the matter.

Or not, who knows, tune in next week to find out.