It's preposterous to suggest that the company's true valuation, the offices, equipment, intellectual property and other assets declined over 20% in value from the day before, and within a few days soared 30% higher in value. The only logical explanation is companies and stocks are only loosely correlated.
Tesla's declining share price is a result of increased, not decreased correlation between the stock price and the company's performance.
Tesla reported a net loss of $49.8 million. Operationally, Tesla hasn't posted a profit yet. Revenue climbed 10% from the same period last year, albeit only 1% above last quarter.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV