Full Disclosure: I shorted a few weeks ago when the NYT article came out and covered today.
I would not bet on TSLA the stock just yet. They can be successful and profitable and yet still not come close to the current stock price (P/E contraction, future equity dilution). Most importantly, the thing which stemmed the drop today was a short-sale restriction (a circuit breaker after it falls 10%)
What would be a buy signal for me is when the car cost can be brought down to the 35-40K range (which, based on reports from mercedes benz and bmw, is the most profitable segment)
I would not bet on TSLA the stock just yet. They can be successful and profitable and yet still not come close to the current stock price (P/E contraction, future equity dilution). Most importantly, the thing which stemmed the drop today was a short-sale restriction (a circuit breaker after it falls 10%)
What would be a buy signal for me is when the car cost can be brought down to the 35-40K range (which, based on reports from mercedes benz and bmw, is the most profitable segment)