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
From hero to ZERO in 60 days or less.
My, how QUICKLY they become CAR-B-QUE.
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.
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.