Tesla Hit By Technical Circuit Breaker

Tesla (TSLA) is one of them. In fact, Tesla has almost become a cult movement. I have a hard time chasing overvalued stocks (perhaps due to my frugal German heritage) and sometimes feel tempted to ‘oust’ cult stocks that just don’t deserve their price tag.

This is a dangerous game so I don’t play it often. In fact, there have only been two stocks I’ve ‘ousted’ in the last two years. Back in September 2012 it was Apple (AAPL). Via the September 12 Profit Radar Report I gave this – at the time almost sacrilege – warning and recommendation:

“Aggressive investors may short Apple or buy puts or sell calls above 700.” The rest is history. I have only written once about Tesla in my Profit Radar Report. This was on August 31, 2013: “Every once in a while I like to look at stocks that look too ‘bubbleicious’ to ignore. The current target on my radar is Tesla (TSLA). Tesla is overpriced and the business model is not as sustainable as the stock price suggests, at least in my humble opinion. Read more.

Tesla Motors Inc (TSLA) Putting The Model S Fires Into Perspective

Tesla Motors Inc (NASDAQ:TSLA) has had three fires in its vehicles since the beginning of October. That may seem pretty bad for a company that until recently hadn’t had any. However, Morgan Stanley analysts note that these fires don’t necessarily mean the Model S isn’t safe. 

They maintain their Overweight rating and $153 per share price target on Tesla but say they will keep an eye on the safety issues investors are now concerned about. They also make an interesting observation about drivers of the Model S because of who may be driving it now.

Tesla Motors Inc (NASDAQ:TSLA) have been falling since the company’s latest earnings report this week and this third fire that was reported. But all in all, these fires aren’t such a big deal for Tesla and shouldn’t be a big deal for investors. Read more.

 

Tesla Motors Inc (TSLA) Still Heading To $200 A Share

Tesla Motors Inc (NASDAQ:TSLA) shares fell more than 7% during the regular trading day on Thursday, marking yet another day of big declines for the automaker. Some analysts, like those at Wedbush, cut their price target for Tesla, but others, like those at Deutsche Bank, still say it’s heading to $200 a share.

Analyst Dan Galves of Deutsche Bank issued a research note this week maintaining his $200 a share price target for Tesla Motors Inc (NASDAQ:TSLA), according to Mamta Badkar of Business Insider. That’s a 40% premium to the automaker’s current share price. Galves says Tesla can still be at the leading edge of a major transportation shift and that the automaker benefits greatly from its direct to consumer sales model. Read more.

Tesla's Valuation Drives Me Crazy

I can remember back in March 2000 when the Nasdaq was breaking through 5,300 and dot-coms were trading on very, very thin air. In fact, that is about all they were trading on. Many of these recent initial public offerings had very little in the way of plans beyond the IPO moment.

The S&P 500 was trading at a PE ratio range in the mid-30s back then, and the norm for Nasdaq stocks was usually somewhere in the triple digits. Tech analysts and go-go mutual fund managers were the rock stars of the day. The saying going around the market was, "Valuation does not matter anymore!

Well, here we are an unlucky 13 years later and we still are not even close to repairing the damage that was done to the Nasdaq in the years that have followed its 5,300 peak. Read more.