Thursday, March 6, 2014

Is It Finally Time To Sell Tesla? TSLA

There's an old saying in the restaurant business: "Feed the rich, eat with the poor. Feed the poor, eat with the rich."
It's pretty self-explanatory. The guy who owns the four Popeye's Fried Chicken locations probably has better personal cash flow than the owner of the high-end, nouvelle, southwest creole joint in a rehabbed old cotton warehouse downtown. Interestingly enough, that same philosophy can be applied to the car business. From 1919 to 1937, the Duesneberg name was the gold standard in transportation for tycoon and Hollywood types. Only 712 cars were produced.
But 39-year-old Henry Ford had a different business model. Ford (NYSE: F) had moving assembly lines and a good quality, but produced only a bare bones Model T automobile. You could get it in any color you wanted -- as long as it was black. The rest is history.
Tesla Motors (Nasdaq: TSLA), I'm afraid, is today's Duesenberg. And the company's stock does not merit its price.  (more)

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