In one month Tesla has made a return of 20.13% (at the time of writing this article). Zacks analysts along with many other have it ranked at "Strong buy" status yet this article shall focus on why you are indeed setting yourself up for a dangerous shock in buying this prince of the NASDAQ.
Point one: patents
Taking a look at the fundamental facts behind Tesla should give any investor the shakes. recently they released not just a few of their patents all of them. That's right Tesla are the "revolutionary car company" who own no patents at all. Instead they are fronting the costs for other big companies to step forward and take control of the market. It's one thing to try and do the planet good but you have to do it in an ethical business manner surely.
Point two: over valuation
This section may be a touch hypocritical of me as I do have a stake in perhaps the most overpriced stock on the market yet Tesla surely has to be seen as ludicrously over priced at nearly $33 billion dollars total market capitalization I think it's fair to say Tesla is already priced at what it may become rather then what it already is leaving no room for growth in the future. The price of Tesla is nearly half of Ford's and I am yet to see a Tesla vehicle on the roads yet I can't leave the street without seeing at least half a dozen Fords at Tesla's value I would expect to see a few cars a journey yet they are nowhere to be seen because they REALLY AREN'T SELLING MANY.
Point three: pricing
Tesla vehicles are expensive is an understatement, they are damn right over priced. I don't care how much they help the planet I would never feel as good driving around in a 100k Hippy-mobile with bog standard settings compared to a 100k top of the range Mercedes and i'm sure people facing this decision don't even consider Tesla a viable option and why should they?
Point four: the reason it's up
I have considered for many hours how Tesla can be so highly priced and then the answer came to me. Tesla must be the next Pump 'n' dump stock traders are waiting to burn people over. My advice stay away.
(At the time of writing this the Tesla stock was at $264.37)
