The lowest price Tesla Inc. stock (NASDAQ:TSLA) can show for the last 12 months is $178.19. Since then, it has traded at $386.99. It is easy to see the allure of buying TSLA, and bulls will say you cannot keep a good stock down. Shareholders who have been around for a year or longer are smiling ear to ear right now.
Albeit, Tesla Inc. investors are treading on unstable territory. For a good look at the high risk proposed by the Elon Musk Corporation, click here.
Up and up goes the electric car maker’s share price, pushed by optimism and management stinging the public along. That is all good and well, according to shareholders. This week comes with proof that people only need some kind of vague promise in order to throw their cash at Tesla.
A thing or two has to be said about the company. It is nothing new either, but definitely worth reiterating. The energy auto business is overvalued and a lot more should be demanded from the company at nearly $400 per share.
It is not that investors are blind to Musk’s game of ‘guess if we can do this’. Rather, they are optimistic that the payoff will be worth the setbacks.
Tesla Inc. spiked more than $30 in the last ten trading days. Since their retreat back at the start of the third quarter, they have come $0.34 away from their all time high.
Yet shareholders seem to overlook why the stock tumbled earlier this year. It was not due to missing targets or a new, deterring deal. Instead, Elon Musk only came at the very low end of his own sales projections. It proved enough to make investors loss their flavor for TSLA.
The lesson is basic: high value equals high expectations. However, even that is fading in the minds of the Tesla Inc. fan base. Investing in NASDAQ:TSLA means throwing the book out of the window and resorting to optimism.
Better still is that the corporation does not seems to be held to its assurances anymore. Analysts could fill a cabinet with misfires and overstated promises made by the young and ambitious automaker. This article only touches the most recent disappointment.
Tesla Inc. semi truck promise (TSLA)
Shareholders should not hold their collective breath for any sort of details before the unveiling. That does not forbid analysts from speculating, though. With the likes of Daimler and Cummins already rolling out EV trucks, Tesla is probably around 18 months away from pushing out its own heavy duty challenger.
The market is eager to gain new electric trucks. That is, however, provided Tesla offers a vehicle which meets the range needed by fleet owners. On the range front, Tesla is speculated to produce a Class 7 or 8 truck that can conquer 300 to 400 miles on a full battery.
The company already has a widespread network of supercharging stations in the U.S., too. It won’t be enough to win over long-distance haulers, but a market within the truck’s speculated range does exist. Factor in the rumored self-driving capabilities as well as regulations opening up to the technology, and Elon Musk might be working on prized sell for fleet owners.
However, with all the fanfare and excitement over the incoming Tesla Class 7/Class 8 semi truck, it is easy to forget that the vehicle was promised to be unveiled this month. Shareholders rewarded the company for another unfulfilled promise last week. Now, Musk tells the public to expect to see the truck on the 26th of October.
Still riding on its truck teaser, Tesla kicked off Monday with a climb to $386.46. That represents an increase of 1.75 percent from Friday’s closing value. The initial trading day of the week also saw over 2 million TSLA shares trade hands. The lowest figure Tesla can show for the last 12 months is $178.19. Since then, stock has traded at $386.99. It is easy to see the allure of buying TSLA right now.
Tesla Inc. stock still offers hot, fast profits (TSLA)
The carmaker’s stock was performing equally as well during the second quarter. According to an SEC filing, Dai Ichi Life Insurance cashed in on the surge and sold 2.3 percent of its Tesla stock over the period. The life insurer disposed of 484 TSLA shares, leaving it with 20,612. Dai Ichi’s stake in Tesla Inc. stock is worth $7.5 million.
Nearly 100 shares were sold by the company’s vice president Eric Bradnderiz in a transaction dated September 5th. The VP made $34,661.88 on shares sold at an average $350.12. Staying inside the company, Director Kimbal Musk cashed in on Tesla stock, too. On the 3rd of July, the director pulled off a total transaction on $1.7 million. This is also based on an SEC filing, which shows Musk selling 4,690 shares at an average $367.68.
Company insiders have cashed in 53,949 shares over the last 90 days. They have made nearly $18.5 million over the period.
Finally, it should be highlighted that while bullish brokerages like Guggenheim put a $430 price target on the stock, the overall expectation is much lower. A survey of 35 research entities reveals Tesla Inc. stock to have an average price objective of $315. That is a long way down.
Let us hear your opinion on Tesla Inc. stock. (NASDAQ:TSLA) Should investors fret about bad news pushing the stock down? Leave a comment below.