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Tesla: Missing a Chance on Another DeLorean

NEW YORK ( TheStreet) -- Anytime I come across something that seems too good to be true, I get nervous. Call me a skeptic.

The sweat starts pouring down pretty quickly, especially when there's money on the line. There's no coming to terms after I've screwed up and lost money by going against my better judgment.

But what happens when your better judgment fails?

This pretty much sums up my relationship with Tesla (TSLA - Get Report), a stock I've always liked. But the company just could never fit into the "code" of my portfolio. I've always believed that Tesla was the DeLorean of the future. While the electric vehicle is a great concept to go along with stylish engineering, as with the DeLorean, I've always believed Tesla was too far ahead of its time to be taken seriously today.

As far as the stock is concerned, I've never been the type to invest in "feel good" stories, especially in an industry dominated by the "Big three" in Ford Motor (F), General Motors (GM) and Chrysler. Others have tried to take them on only to have "run out gas." Ask Preston Tucker and Malcolm Bricklin.

While you're at it, you might also want to do some research on John DeLorean. In fact, I don't know of a person who has ever watched the "Back to the Future" trilogy starring Michael J. Fox without wanting to take the DeLorean for a spin at 88 miles per hour. Everybody wanted one. Yet, the DeLorean still failed.

So for me to believe in Tesla, I needed the underlying business to be solid enough to matter. Not only would it have to make sense, but more importantly, I needed to trust that the business could make. And Tesla, despite its ingenuity and cleverness, never made any, not for a decade. This is my first public admission that I've been an admirer of this company. My better judgment kept saying no.

Despite my hesitation, there was still a part of me that knew that Tesla might one day overcome some obstacles. With a bit of luck the company could outperform the market. With the stock having reached a new 52-week high on Tuesday of $137.48, shares of Tesla have posted gains of more than 300% year to date. When expanding the horizon further by the trailing twelve months, shares have soared well over 420%.
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