During yesterday’s FIN136 class I asked how many students used twitter. I was surprised to see that not one student uses twitter, out of a class of 35. So then I took at the stock chart since IPO: not pretty. Then I stumbled across the linked article below.
Later in the day an MBA student described a bull case for Tesla. Admittedly, there is good argument for electric cars and that many would like to have one. However, not everyone can pay $100k, the model 3 is a question mark, the ability for Tesla to make money manufacturing cars (not from issuing stock or selling carbon credits), political issues (can’t sell in some states), and stock dilution (mentioned by a fellow MBA student) are all concerns for an investor.
In fact, the first assignment for that MBA class is to take the linked article below and redo the analyses for TSLA. In addition, I would like to see what growth in profitability and unit sales is necessary to justify the current price.
All the other readers of this post can do that exercise for fun. 🙂