This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Wait for $100 Before Buying Tesla

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.

TSLA Revenue (Quarterly) Chart

If you look real carefully, you can see a blue line in the above chart that represents Tesla's revenue. Toyota (TM), General Motors (GM) and Ford (F) are the others for relative reference.

GM's forward earnings multiple is 7.4, Toyota's 8.7, and Ford's at 8.1. What's Tesla's? A "soft" 53, meaning if you use accounting gymnastics and ignore GAAP and a bunch of real -- but we're going to pretend they don't exist -- expenses, a profit can be claimed.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
TSLA $241.93 0.00%
AAPL $109.27 0.00%
FB $88.26 0.00%
GOOG $600.70 0.00%
YHOO $31.58 0.00%

Markets

Chart of I:DJI
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASDAQ 4,683.9190 -49.5780 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs