"Tesla continues making headlines as they transition from a startup to a mature company. Elon Musk’s struggles to meet production goals and sustain profitability make stock price predictions continuously challenging.
When Tesla introduced its first vehicle to the world, investors clamored for what they saw as a truly innovative product. The world of electric vehicles no longer sat with small, compact cars that would only get a few miles before needing to be recharged. Tesla offered a luxury car that people wanted to own that additionally looked amazing.
Elon Musk leveraged his unusual personality and entrpenurial spirit to receive free press and hype. But, he stunned the investment community when he actually began to turn a profit at Tesla. The reality of a sustainable energy vehicle seemed in sight. Yet, as the years rolled on, Musk’s hype seemed to slowly fade and reality set in. As the company grew they struggled to maintain production. Further, their offerings to high end clientele limited their marketable audience.
Today the company burns cash and struggles to maintain its company’s pace. Tesla issued a massive debt offering in an effort to shore up its balance sheet and maintain cash reserves. Even the deep pockets of Musk himself will only reach so far. The question now remains, what will the stock do?"
Read more here.
When Tesla introduced its first vehicle to the world, investors clamored for what they saw as a truly innovative product. The world of electric vehicles no longer sat with small, compact cars that would only get a few miles before needing to be recharged. Tesla offered a luxury car that people wanted to own that additionally looked amazing.
Elon Musk leveraged his unusual personality and entrpenurial spirit to receive free press and hype. But, he stunned the investment community when he actually began to turn a profit at Tesla. The reality of a sustainable energy vehicle seemed in sight. Yet, as the years rolled on, Musk’s hype seemed to slowly fade and reality set in. As the company grew they struggled to maintain production. Further, their offerings to high end clientele limited their marketable audience.
Today the company burns cash and struggles to maintain its company’s pace. Tesla issued a massive debt offering in an effort to shore up its balance sheet and maintain cash reserves. Even the deep pockets of Musk himself will only reach so far. The question now remains, what will the stock do?"
Read more here.