Tesla Motors Inc: Another Crushing Defeat for TSLA Stock Bears
TSLA Stock Ends the Year on Top
Tesla Motors Inc (NASDAQ:TSLA) is about to deliver the most cars it’s ever shipped in a single year, silencing critics that were skeptical of TSLA stock.
Many of these critics believed that Tesla couldn’t possibly scale up its production numbers, yet the company is on track to ship 80,000 cars this year. That’s about as wrong as you can get.
Sure, Tesla isn’t the most punctual of companies. The electric carmaker missed a few deadlines here and there but, when the dust settled, it still emerged the victor. Anyone who is still bearish on Tesla stock is just deluding themselves. Just look at what happened in 2016.
- Tesla unveiled the “Model 3” to record-breaking pre-orders.
- Tesla acquired SolarCity Corp (NASDAQ:SCTY) and received shareholder approval.
- Tesla beat analyst expectations for deliveries last quarter.
TSLA stock bears doubted these events at every turn. I remember reading reports that Tesla was a “niche” product and could never garner enough demand to justify a mass-market car. That was proved wrong by late March.
Then there was a massive outcry after the SolarCity deal was announced. Tesla stock lost more than a tenth of its value as investors ran scared. They didn’t think the company would be able to find cost-effective financing once it sealed the deal with SolarCity.
But then they calmed down. TSLA stock bears assured us there was no way that Tesla shareholders would approve such far-fetched deal. Right?
Wrong.
Once they understood how Tesla and SolarCity could overlap, the shareholders got on board. The deal passed without a hitch. Moreover, Tesla cancelled the funding round it had planned during 2016, shattering any fears about financing. As a result, TSLA stock bounced up six percent this month.
Now that Tesla announced record deliveries for 2016, you would think these TSLA stock bears are ready to quiet down. But no, their pessimism runs strong. They have instead turned their attention to 2017, arguing that Tesla won’t be able to release its Model 3 on time.
“While we cannot rule it out, we do not adopt as our base case a scenario in which Model 3 deliveries begin in 2017,” writes one analyst. (Source: “Tesla Is About to Crush a Test That Will Silence the Skeptics,” Futurism, December 12, 2016.)
“We recognize that Tesla management has targeted a [second-half] launch date and that they will make every effort to satisfy high levels of preliminary demand and fill orders for the product as soon as possible. However, our base case is for a launch in late 2018.”
So what we have here is speculation that Tesla will delay shipping its mass-market vehicle by more than a year. Why? Because the analyst in question assumes that Tesla will use more third-party suppliers on this car than on the “Model S.”
Never mind that Tesla is famous for building its own parts, or that the company continually defies its harshest critics. Never mind that every other carmaker—including Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM)—is imitating Tesla’s push into all-electric and self-driving technologies.
Those are merely facts, and Tesla stock bears aren’t interested in facts.
They are perfectly willing to ignore Tesla’s record when it doesn’t suit their narrative. But I’m not explaining any of this to “take down” TSLA stock bears. There’s a very specific reason why you should know this, dear reader.
Consider this: where would Tesla stock be trading if critics didn’t cause a ruckus at every turn?
Based on its actual record, we would say about $250.00 per share. But the constant and disproportionate attacks on TSLA stock had dampened its growth this year, causing the stock to level out $192.43 (at the time of writing).
As Tesla continues to outperform, we expect investors to start tuning out the bears and listen to some common sense. At that point, TSLA stock will almost surely start to heat up.
