Wednesday, July 07, 2010

Tesla Hits The Wall of Reality of Question Number 4

The autoblogreen headline reads Tesla shares in freefall, now below IPO price.  Within the story we read these “expert” analyses of Tesla Motors.

...According to Josef Schuster, the Chicago-based founder of IPOX Capital Management LLC, “The company is a great concept with relatively weak fundamentals. Markets are weak and in a weak market right now this is hurting the company even more.”

Financial expert Michael Holland explains, “They brought this thing into a market that was not rewarding hype,... The stock did get its pop, and now it’s plagued by the reality of the marketplace. The reality of the marketplace is that people aren’t paying for dreams and visions.” (bold by ed.)

The reality of question number 4, which I noted in a post titled Reality for Tesla “True Believers.”

But question number four, “And do they offer the kind of basic, bottom-line transportation value needed to attract mainstream buyers in a tough market?”, is the most important question, and with a starting price of around 60K, running up to 130K, I think the answer to the question is a emphatic “No.”

As I have previously noted in regards to Tesla, Obviously, A Hand Out is in Order, otherwise Tesla Roadster to Go the Way of the Segway.

Posted by John Venlet on 07/07 at 02:16 PM
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