Even Tesla Motors Inc Bulls Think Shares Will Continue Falling

Shares of Tesla Motors Inc (NASDAQ:TSLA) fell to nearly $185 today before partially recovering but remaining down by more than 2% in afternoon trading. The stock dipped below $200 on Monday for the first time in quite a while, and shares have declined more than 14% in just the last 30 days.

Even Tesla Motors Inc Bulls Think Shares Will Continue Falling

So is this trend going to turn back around? Even those who say they love Tesla Motors Inc (NASDAQ:TSLA) on (via The Street) don’t think so, at least in the next few months.

Tesla sentiment split nearly 50 / 50

On StockTwits, 52% of investors are bearish on Tesla Motors Inc (NASDAQ:TSLA). Short interest is reportedly almost 29% of the float. In fact, the automaker is the most-shorted stock on the NASDAQ 100.

Part of the reason sentiment on Tesla Motors Inc (NASDAQ:TSLA) is turning around is because of concern about the bull market in general. The automaker’s stock is just one of many momentum stocks which have been affected by this turnaround. And with concerns about the bull market comes more of an emphasis on Tesla’s fundamentals and near-term valuation—two things Tesla bulls know are the weak spots in their case. After all, at the current valuation, Tesla’s share price is a 2015 forward earnings ratio of almost 52.

Will Tesla be back when the market steadies?

Most bulls say even though Tesla Motors Inc (NASDAQ:TSLA) may not be worth its enormous market capitalization right now, it will be one day. They see CEO Elon Musk as a visionary who will put a Tesla battery in every home, one way or another whether it’s part of one of Tesla’s vehicles or an energy storage system for SolarCity Corp (NASDAQ:SCTY)’s solar panels.

Some investors on StockTwits remain concerned that the markets will stabilize in June, and they think investors’ appetites for risk will return. At least one person said on the form that he was buying June calls for Tesla Motors Inc (NASDAQ:TSLA).


  • drivin98

    Exactly this.

  • Xavier Cugat

    The price of the stock has always been a reflection of the wisdom of following Elon Musk. New information from Musk kept coming at a rapid rate and predictions made by him kept coming true. Now, it seems to me, there is a paucity of exciting information and this is reflected in the lackluster price of the stock. Perhaps this is deliberate on Musk’s part or perhaps it is simply reflective of the fact that doldrums that must occur when a company attempts to bite off more than it can chew. When will Musk excite us again – that remains to be seen.

  • Haeze

    @Dave_SRQ:disqus The problem with that statement is that TSLA for Q1 2014 will not report solid results. They stated this in the Q4 report, because the cars that will be selling in China momentarilly had to be shipped over there. Thus, they count against Tesla’s supply-constrained production numbers, but they had not yet been sold by the end of the quarter. Even if Tesla produces more cars than ever for the quarter, they will still have lower deliveries in Q1. You will, however see a sharp increase in sales for Q2 since you will have normal production, plus all the delayed deliveries from Q1.

  • Dave_SRQ

    About 1 to 2 weeks before, and for about 2 weeks after the Tesla earnings call, you will see sharp upward price movement. This always happens when Tesla reports solid results. The last few days presented a fabulous opportunity for lucky shorts who timed it right to cover. In my opinion, if shorts hang around until the end of the month, they’re going to get burned again.