NEW YORK (TheStreet) -- Tesla's (TSLA) stock took off last year like an electric car going 0 to 60. But, as the attitude has changed towards so-called "story stocks," investors on StockTwits.com are debating jumping out of Tesla's passenger seat.
Investors are no longer dazzled by Tesla CEO Elon Musk's vision in which the masses drive affordable electric cars and power their homes with solar energy, potentially stored in batteries manufactured at Tesla's Gigafactory. They want to see profits that put Tesla on a roadmap to justifying its $22 billion market cap.
And investors didn't see those justifications during Tesla's earnings conference call Wednesday evening. The stock fell 11% Thursday -- and wavered between red and green for much of Friday morning?after Tesla management warned that the company would be "slightly free cash flow negative" in 2014 as Tesla continues to invest in "aggressive expansion plans."
$TSLA jump ship?? Imtiaz (@Imtiaz) May. 9 at 10:47 AM
Tesla has fallen about 33% from its all-time-high, hit back in March. Bad news can't be blamed. The company met first quarter EPS estimates of $0.12 and beat consensus revenue expectations by more than $13 million, according to stats on the Analyst Ratings Network. And Tesla is still receiving more orders for cars than it can fill. In North America, orders were up 10% but deliveries were down due to more cars being delivered to Europe.