Why Tesla (NASDAQ: TSLA) Might Be the Market’s Biggest Mistake of the Year

Tesla is one of the most talked about stocks in the market. But, it is also one of the most misunderstood, with a sky-high valuation based only off of fanciful words from its CEO. Read here to find out what makes the valuation so out of whack, and learn of a handful of better investments in the auto industry.
Tesla (NASDAQ: TSLA) has become the ultimate fanboy stock.
Earnings for the fourth quarter came in at a loss of 13 cents a share, where the company was expected to earn a 32 cent per share profit. Losses continue to grow. Last quarter it lost over $70 million, in the third quarter it lost $60 million, in the second quarter it lost $50 million, and…well, you get the picture.
Tesla shipped just around 9,800 cars during the fourth quarter, versus the expected 12,000. Ultimately, it missed its goal of shipping 33,000 cars in 2014.
The company made a slight profit during 1Q 2013, but it has now posted a loss for seven straight quarters. That’s a trend that’s expected to continue for the foreseeable future. (more)
Please share this article