Ivor O’Connor

November 9, 2013

Good Time To Short Sell Tesla Stock?

Filed under: Uncategorized — ioconnor @ 3:36 pm

Apparently there has been a third Tesla fire this week. Tesla enemies are coming out of the wood work writing bogus articles like this one at Toms Hardware about the fires. Saying that they catch on fire more frequently than normal cars. (The real stats are Tesla vehicles are 40% less likely.)

However there are not many of these Tesla cars on the market. Only 20,000 or so Tesla Model S EVs so far. It would only take two more fires, for a total of five, and Tesla would catch on fire just as frequently as a normal dinosaur vehicle. With such low numbers it would be relatively easy for Tesla haters to game the stats. All they would have to do is buy a few Teslas and force them to catch fire. The stock will plummet. And we know Tesla has lots of haters. Look at the NY Times, Top Gear, Automotive Dealer Associations, Exxon, BP, etc.. The list goes on and on. It’s endless. And in today’s world there is no end to the lows large corporations will sink to protect their investments. Now that Tesla has been successful for three quarters, is still selling so quickly there is always a backlog of months, and everybody raves about them they have essentially become a target.

Tesla will ultimately win but for now they are going to hit a bad patch and it would probably be a good time to reevaluate the stock. (Though buying a Tesla is a smart thing to do.)

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