There’s a lot of talk today about Tesla – even more than usual – because of the Big Conference Call everyone was so excited about last night. Well, it turned out to be a nothing-burger with cheese on it, since all they said was that they were lowering prices (again) and would be going all online. The stock, has you can see, has been just wheezing along for years now:
Indeed, the stock is the same price now (roughly) as it was in September 2014. How many stocks can you point to that, in this totally fake market, have gone nowhere over the past five years?
In fact, TSLA has, since mid-December, lost about 20% of its value. I ask again: this is completely pumped-up market, in which many large stocks are up 50% in the past couple of months, how many well-known issues have actually shed a fifth of their value in the same timespan? Clearly Tesla is having trouble.
I find the “online only” aspect of their announcement to be the most interesting. They have nearly 400 stores, all of them beautifully and expensively appointed. So now they’re going to shutter them out of the blue? And what about their service centers behind every one of those showrooms? How do you half-close a facility? When you’re dealing with a large, physical product like a car, going online-only seems – – well – – risky.
As much as I love my Tesla, I think the biggest risk they face is that some gargantuan, very well-resourced global car makers are about to get into the electric car market in a big way. The Tesla Model S doesn’t look any different than it did eight years ago, and yet you’ve got some very sexy looking electric vehicles coming down the road, such as this gorgeous Porsche:
So what’s Elon going to do?