Tesla Motors Inc (NASDAQ:TSLA) is a sexy company. An innovative, green, maker of sexy cars led by a man that has done little wrong in his life. From building his fortunes on the back of PayPal to essentially replacing NASA, Elon Musk by all outward appearances is a winner. It seems, at times, that everything he touches turns to gold but this hasn’t stopped a number of investors from remaining wary of the company’s future or of having prevented money managers from looking for large positions in the company.
Alice Lomax Tempted To Acquire Tesla Stock
Take the case of Motley Fool or, more specifically, Alice Lomax a senior writer and analyst for the site. Ms. Lomax has been repeatedly tempted to acquire Tesla Motors Inc (NASDAQ:TSLA) stock but has failed to pull the trigger. Before going further, I should note that it was a piece written by Heide Malhotra at Epoch times that gave me the quotes and specifics regarding Ms. Lomax and one can a guess a number of other potential investors.
In a recent piece, Ms. Lomax endeavored to explain her well documented apprehension regarding Tesla and its stock.
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“For those of us who were mulling investing in Tesla Motors Inc (NASDAQ:TSLA), well, I believe we blinked and we missed it.”
While her honesty is appreciated with regards to indecision, or working the math and seeing the Street miss something less tangible, this was not the first time that Ms. Lomax (and others) failed to see Tesla Motors Inc (NASDAQ:TSLA)’s current value.
“I have repeatedly considered adding Tesla shares to the Prosocial Portfolio I’ve been managing for Fool.com for more than two years now. I have also repeatedly chickened out,” she also wrote recently.
In 2010, Lomax seriously considered reconsidering her position, or lack therein, but once failed to pull the trigger given the company’s balance sheet that simply saw it accumulating loss after loss each quarter adding to its less than profitable nature.
Come the end of 2011, Lomax was considering buying Tesla stock for Motley’s Rising Star portfolio only to flinch again based Adam Jones, analyst at Morgan Stanley, turning negative on Tesla shares at the time and lowered his price target from $70 to $44. This lowering came as a result of correcting his own work which saw electric cars failing to meet his numbers of 2025.
As recently as a few weeks ago, Lomax and others considered the stock following Tesla Motors Inc (NASDAQ:TSLA)’s first profitable quarter, but in her case she wrote, “The stock’s swift ascent means investors could slam on the breaks very quickly, too. For those of us who didn’t buy in early, that moment’s exactly what we’re waiting for.”
This is by no means an indictment of Alice Lomax, but rather an illustration of why investors can’t wrap their heads around Tesla Motors Inc (NASDAQ:TSLA).