Oh California? Ok Governator? Oh greentards? If electric cars are so “hot” then why is their stock “cooling?” Per Bloomberg, “Tesla Falls the Most Since July After Lock-Up Ends” which means the investors can finally sell their stock, and it appears there may be some anxious investors who see the writing on the wall and want to get out while the getting is good.
Tesla Motors Inc., the unprofitable electric-car maker, fell the most in more than five months after insiders were allowed to sell shares in the company. Tesla shares fell $4.82, or 16 percent, to $25.27 at 12:12 p.m. in Nasdaq Stock Market trading after earlier falling to $25.06 for the steepest intraday drop since July 6.
Someone’s given it a sell rating.
Capstone Investments Inc. initiated coverage Dec. 23 with a “sell” rating on the expectation that plug-ins and other hybrids will continue to outsell pure electric cars such as Tesla’s.
You can say what you want, but for now anyway, this doesn’t appear to be a good investment, nor do electric cars in general. Per Bloomberg they have “never mass-produced” and they owe the DOE $465 million in loans they have already had to start repaying.
This appears to be yet another indication that California’s implementation of AB32, which is touted to create a bunch of green jobs, is as I’ve been calling it, ‘bullshit.’
Wait until Tesla starts getting higher energy bills due to California’s cap & trade program and their manufacturing costs rise. Wait until those electic bills go up due to cap & trade and people start finding out electric vehicles aren’t as cheap as claimed. Will Tesla survive? Will electric cars? Will California? Who knows, but I’m glad I don’t have money in it.