There are a lot of noise, false information and soapbox pundits out there, offering some ill-informed misinformation. This blog, and my blog from Sept. 26, 2018, offer a more complete picture, so that you can make your own judgments.
Finally, Tesla's stock is down, but it's not "crashing." In fact for news like this, the stock has held up pretty well. Tesla shares were trading for $307 yesterday and closed at $265 today. Since April of 2018, Tesla shares have been fluctuating between $250/share and $385/share, rising and falling on headlines.
Tesla is making the safest cars on the road and the company is growing revenue at a pace of 43% year over year, simply squashing the competition in growth. Learning how to do a Stock Report Card and ask the Four Questions to evaluate your investments can reveal most of the pieces of the 100-piece puzzle that is investing in individual companies. For those of you who have attended my retreats or read my books, what you are experiencing today with Tesla is exactly why it is so hard to “buy low and sell high.” Today, Tesla’s stock is 13% cheaper than it was yesterday. However, everyone thinks it’s crashing. The temptation is to sell low, rather than to buy low. It is the sober analyst who is forecasting possible scenarios, based upon the facts, and coming up with a rational plan that includes buying Tesla stock on sale (or perhaps selling it, even at a loss, if the company is headed into the toilet).
We’ll see if the SEC’s rush to judgment stands up, whether the parties settle this empasse or whether Tesla will be forced to go private to protect its visionary chairman and CEO. I’ll be sure to include an update in my October teleconference on Oct. 11, 2018. Be sure to join me. (It’s free.) Click on the link to access the show page, call-in and listen back information.