Why Invest in Tesla When It Keeps Losing Money?
Profitable investing comes from picking investments that have a future. The concept of intrinsic stock value is based on projected future cash flow. As we follow our investments and pick others an important thing to watch is company earnings. Obviously, you want your investments to be showing a profit, even growth stocks and other investments with potential for the future. But what if earnings are simply not that good? A case in point is the electric car maker, Tesla. Why invest in Tesla if it keeps losing money? Earnings reports are due and The Street says it is do or die for Tesla among others. Tesla will likely take the spotlight – analysts expect the electric car manufacturer to report a loss of $3.53 per share on sales totaling $3.27 billion. Short-sellers are making a mistake on Tesla, says TheStreet’s Tesla expert Jonas Elmerraji. The focus right now is on production problems with Tesla’s model 3. The company needs to show investors that it can produce enough cars to generate more cash flow. And then it needs to show that it can make money once production is going well. After all, why invest in Tesla when it keeps losing money? The point is that those who are in Tesla for the long run believe that the company will fix its production problems and continue to be the rising star...
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