Looks Like This Shined Turd Is Losing It’s Lustre.

For most of this year, Tesla Motors has been the darling of the capital markets. After a crappy 3rd. quarter, and poor 4th quarter guidance, the bloom is coming off the rose.

Not to mention, 3 ill-timed FIRES. From Investors’ Business Daily .com

 

Tesla Hauls Automakers From  Leading Industry Ranks.

By ALAN R.  ELLIOTT, INVESTOR’S  BUSINESS DAILY

 Posted 11/08/2013 06:15 PM ET

From hero to ZERO in 60 days or less.

    

My, how QUICKLY they become CAR-B-QUE.

 

stock chart

What goes UP, MUST come DOWN. With a thud.

The week’s meltdown in shares of Tesla Motors (TSLA) dragged the automakers group out  of IBD’s top 20 industry rankings.

Tesla’s 15% face-plant decimated its stock chart, and showed just how much of  the group’s strength owed to the maker of luxury, battery-powered cars. Other  automakers, including Ford Motor (F), Toyota Motor (TM) and Tata Motors (TTM), largely held their ground. And Germany-based  Volkswagen (VLKAY) stroked to a four-year high.

Tesla crumbled after investors were disappointed by management’s Q4 guidance  and made nervous by a third fire reported in one of the company’s flagship Model  S sedans.

The tumble dragged shares nearly 30% below an October high. That left them  midway between the stock’s 10- and 40-week moving averages and weeks, if not  months, away from forming a possible buy point.

Volkswagen edged 2% above a 48.45 buy point in a 10-week flat base. Company earnings have declined  for five straight quarters, accompanied by stumbling sales growth. But management has pledged  to build the world’s largest automaker, and analysts expect an earnings  turnaround next year.

The Auto/Truck-Replacement Parts group also fell from the top ranks, but with  no single stock to blame. In addition to the benefit of healthy auto sales, the  group has received a lift from automakers seeking lighter, more fuel-efficient  parts and technologies.

Federal-Mogul (FDML) builds powertrains for  automakers, as well as a range of aftermarket parts. Earnings are recovering  from a sharp drop in 2012, and clobbered analyst forecasts in Q3.

Shares finished a three weeks-tight pattern with a 21.50  entry.

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Damn sure glad this was another stock I stayed away from. But, I see NOWHERE in this story the MAIN reason Tesla shares had skyrocketed.

Could it be they didn’t want the TRUTH out there? If it weren’t for Tesla selling…wait for it…. CARBON CREDITS, it is highly likely this stock would STILL be in the mid $20 range.

~

Clyde

 

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9 Responses to Looks Like This Shined Turd Is Losing It’s Lustre.

  1. Buck says:

    Just like solar and wind power energy. We will have it all one day. When PRIVATE INDUSTRY finds a way to make it profitable.
    Until then we have a government willing to give our money to hucksters, carnies and con artists lined up at the pay out window. They will never show a profit. They don’t have to. They got what they came for. Our tax dollars. Get what they can and as soon as their shell game becomes apparent to enough folks, they award themselves multi-million dollar bonus’ and then file bankruptcy.

  2. Mrs AL says:

    Great comment, Buck. I can’t add a thing …

  3. Garnet92 says:

    Damn, I came here expecting to make a comment, but Buck just about said it all, like Mrs AL, I can’t add a thing.

  4. CW says:

    I agree, Buck’s comment was spot on.

    Tesla is the epitome of the gov’t picking winners and losers, as evidenced by their stock performance compared to that of auto makers with much better sales and profitability. How ironic that the supposed Wall Street haters have made a killing with gov’t support of the “green” auto industry.

    I have to disagree with you about owning the stock, Clyde. Looking at the chart above I wish I had bought Tesla stock. Even with the recent loss it’s been done very well.

    • Clyde says:

      While it looks good on PAPER, CW, one MUST ask the question: How well would that stock look WITHOUT the heavy subsidies of government? With the dismal sales figures? THAT is WHY I steered clear of it.