Would you invest in Tesla?

[the Teuton]

http://www.autoblog.com/2010/07/07/tesla-shares-in-freefall-now-below-ipo-price/



Tesla is now trading under its IPO value. Sure, I'd think that this company is nothing but hopes and dreams attached to a battery. But Elon Musk has never failed before.

If I were to buy a few shares, especially given that we're still in a recession, would that be a terrible idea? Would you buy in?

[Mustangfan2003]

At around $16 a share it may not be a bad buy. 

[3.0L V6]

http://www.autoblog.com/2010/07/07/tesla-shares-in-freefall-now-below-ipo-price/



Tesla is now trading under its IPO value. Sure, I'd think that this company is nothing but hopes and dreams attached to a battery. But Elon Musk has never failed before.

If I were to buy a few shares, especially given that we're still in a recession, would that be a terrible idea? Would you buy in?

No.

Just because someone hasn't failed before, doesn't mean they won't fail for the first time.

Since no automaker has jumped on this bandwagon yet in the form of a production car, I'm skeptical about the profitability of the whole enterprise. Battery tech has a long way to go before it can compete with the internal combustion engine.

[sportyaccordy]

:pictureofteslaonflatbed:

[mzziaz]

It's a high risk stock, but I really don't know enough about the company to know be able to give any recommondations.
I have a feeling the cash flow isn't terribly impressive, though.

[AltinD]

Weren't they running at more then 200 Millions in losses before the IPO?

[GoCougs]

Electric cars are an even bigger epic business fail than hybrids. Their goal is to use the IPO money influx to quickly pump up their business stats in order to get bought.

[giant_mtb]

No, no I would not invest in Tesla.

[SVT666]

No.

[the Teuton]

Right now, it's just a boutique maker of electric Elises. But what about when the Model S comes to the market for (supposedly) under $60,000?

[Laconian]

Right now, it's just a boutique maker of electric Elises. But what about when the Model S comes to the market for (supposedly) under $60,000?

I'll believe it when I see it. And that $60k number is completely synthetic. The true cost will be significantly higher, and it will probably be taxpayers subsidizing that low low price.

[Minpin]

Weren't they running at more then 200 Millions in losses before the IPO?

They have not had a single profitable quarter.

Electric cars are an even bigger epic business fail than hybrids. Their goal is to use the IPO money influx to quickly pump up their business stats in order to get bought.

And they ran out of cash.

[Laconian]

Also, Elon Musk is an idjit.

[GoCougs]

I'll believe it when I see it. And that $60k number is completely synthetic. The true cost will be significantly higher, and it will probably be taxpayers subsidizing that low low price.

Apropos to the point, Fisker secured a loan from the DOE for hundreds of millions. Think that'll ever be paid back? The story I read in Wired the CEO says they'll be bigger than Porsche by 2016. (LOL.)

[hotrodalex]

Definitely not. Boutique manufactures are rarely a smart investment.

[Eye of the Tiger]

I would if I had some money to throw away.

[Onslaught]

I wouldn't tell my friend who works for them this, but no.

[Cookie Monster]

No, although where I live is filled with Teslas.

[giant_mtb]

I think that's more of an "if" than a "when.". And how can you know it's going to be at all successful?

[BimmerM3]

If I had money to waste, I'd consider throwing a relatively insignificant amount of money at them just in case something happens, but no.

[Raza]

No.  Electric cars are not the wave of the future, and they will fall flat.

[Minpin]

Rebounded today.

[r0tor]

Nope... Not even close

[Colonel Cadillac]

I would steer clear from Tesla until they show signs of being able to actually make money.