Saturday, April 5, 2014

Tesla Motors Inc (TSLA) news: Tesla - Driven By Noise, But High-Quality Noise - Seeking Alpha

Tesla Motors Inc (TSLA) news: Tesla - Driven By Noise, But High-Quality Noise - Seeking Alpha



This is a very good article about ways to possibly value Tesla (TSLA).  I own the stock myself, and it is not for the faint of heart.  The author makes it clear that Tesla is far beyond the realm of good value currently, but if you look at the company's revenue acceleration, Tesla is a good stock to buy.  Nobody knows how far Tesla can go. Stocks are usually bought on the basis of growing future earnings, and Tesla is a long way from reaching mature stock status where earnings go flat.  So, you will probably be able to make money on Tesla if you buy it on pullbacks, but due diligence must be done to determine where good buying prices are located.  You might try the 50-day or 100-day moving average lines for buying.  You must also consider what the stock market in general is doing.  In the event of a market crash, story stocks like Tesla will be sold first, and you will need to sit on the sidelines for a while.


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