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Print 31 comment(s) - last by Cypherdude1.. on Jul 9 at 5:50 PM


Tesla Roadster, version 2.5  (Source: Tesla Motors)

Tesla Model S Prototype  (Source: Tesla Motors)
Losses are significant, even considering the downward-trending market

It's been a wild ride for Tesla Motor company enthusiasts.  After months of eager anticipation, the company became the first automotive public offering since Ford in 1956, and dumped 15.3 million shares onto the market aggressively priced at $17 (2 million of these shares were sold late, via an over-allotment option).  

That high price turned out to be an early victory for investors, who saw share prices spike up to a peak of 30.42 last Wednesday -- a gain of 78.8 percent.  However, those gains have since been erased as TSLA has taken a sharp plunge on the stock market.  The stock now sits at 15.50 (at press time), well below its IPO price.

The stock market as a whole has been struggling over the last week, with the DOW Jones Industrial Average dropping last week into the 9000s after poor job reports.  For an unproven company like Tesla that particularly spelled trouble.  

Josef Schuster, the Chicago-based founder of IPOX Capital Management LLC and manager of the Direxion Long/Short Global IPO Fund comments, "The company is a great concept with relatively weak fundamentals.  Markets are weak and in a weak market right now this is hurting the company even more."

Despite having one of the first true electric vehicles on the U.S. market -- the Tesla Roadster, recently update to "Version 2.5" -- and several upcoming vehicles, investors are finally falling out of love with the company and taking a hard look at its financials.  Tesla lost $29.5M USD in Q1 2010 -- almost double what it lost in that quarter last year, and over half of what it lost 
overall last year ($55.7M USD).

Electric vehicles have received a firm monetary and public commitment from U.S. President Barack Obama.  Tesla faces tough competition in the near future, from entry-level competitors like GM's 2011 Chevy Volt and Nissan's 2011 Leaf EV.

However, it'd be premature to write off Tesla entirely.  Its Model S entry-level luxury EV looks promising, if it can keep costs contained.  It also has a key new contract with Toyota to help the Japanese automaker develop electric vehicles.



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Heh
By acase on 7/7/2010 10:39:41 AM , Rating: 5
I guess that would be called a Tesla Recoil.




RE: Heh
By JasonMick (blog) on 7/7/2010 10:59:57 AM , Rating: 2
Check the new title! ;)


RE: Heh
By Hieyeck on 7/7/2010 12:48:21 PM , Rating: 4
6 the man if you're gonna use it :)


RE: Heh
By hyvonen on 7/7/2010 1:19:40 PM , Rating: 3
Yeah!

6 6 6


RE: Heh
By Cypherdude1 on 7/9/2010 5:50:44 PM , Rating: 2
quote:
Despite having one of the first true electric vehicles on the U.S. market -- the Tesla Roadster, recently update to "Version 2.5" -- and several upcoming vehicles,
At first I thought electric/hybrid cars were the answer to lowering our dependence on foreign oil. However, after looking at the range and cost of these cars, I think a better answer would be to produce higher mileage gas or diesel cars . I have read that diesel cars have the biggest potential for high mileage ratings. Perhaps what the USA should do is make diesel pumps more available across the country so that it is more convenient for diesel owners. I have read that the highest mileage diesel cars are capable of achieving up to 70 MPG and potentially even higher. If everyone in the USA drove a car which had this much fuel economy, we could end our dependence on foreign oil for years.

Certainly, we would also need to simultaneously increase our vigilance and safety inspections and restart drilling off our coasts and in Alaska. Unfortunately, because of the corruption which occurred in the USA federal government agency which is tasked conduct safety inspections on all oil rigs, the Minerals Management Service , now there is no longer any new drilling:
" Gifts, gratuities and the revolving door

In September 2008, reports by the Inspector General of the Interior Department, Earl E. Devaney, were released that implicated over a dozen officials of the MMS of unethical and criminal conduct in the performance of their duties. The investigation found MMS employees had taken drugs and had sex with energy company representatives. MMS staff had also accepted gifts and free holidays amid "a culture of ethical failure", according to the investigation. The New York Times's summary states the investigation revealed "a dysfunctional organization that has been riddled with conflicts of interest, unprofessional behavior and a free-for-all atmosphere for much of the Bush administration’s watch.""
http://en.wikipedia.org/wiki/Minerals_Management_S...

Moreover, many coastal states are rushing to stop all new drilling. New Jersey and California have already done so and Florida is writing a constitutional amendment to be voted on this fall. Because of the greed of BP and corruption in the MMS, our ability to reduce our dependence on foreign has been greatly diminished.


RE: Heh
By acase on 7/7/2010 1:25:54 PM , Rating: 3
Nice. I will be awaiting my check in the mail.


RE: Heh
By Lazarus Dark on 7/7/2010 7:03:17 PM , Rating: 5
No, seriously, give the man a 6 if your using his title.


RE: Heh
By Phoque on 7/7/2010 6:02:28 PM , Rating: 2
Could it be the right time to buy shares then?


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