Saxo Bank Explains Why The Sparks Currently Gone From Tesla Motors – Video

MAY 15 2014 BY ELECTRICCARSTV 8

This Guy Explains Why The Spark Is Currently Gone From Tesla Motors - The Future, He Says, Is Bright Though And Full of Tesla Spark

This Guy Explains Why The Spark Is Currently Gone From Tesla Motors – The Future, He Says, Is Bright Though And Full of Tesla Spark

Shortly after Tesla Motors announced its Q1 2014 earnings, Saxo Bank released this video, along with the description below:

“Tesla Motors appears, at least temporarily, to be out of favour. Its shares are down 17% in four days. However, this is a stock that’s risen by more than 250 percent in a year. So what’s going on?  Peter Garnry, Saxo Bank’s Head of Equity Strategy, says there are a number of reasons for the disappointing performance. He says there are supply constraints and the quarter didn’t reflect sales from China. However, he still feels confident about Tesla’s future. Tesla’s new ‘giga-factory’, in association with Panasonic, could be revolutionary, according to Peter. It will enable Tesla to compete more effectively on cost. He also points to their earnings’ potential.”

But is the spark gone from Tesla Motors?  According to Garnry, the answer is no.  The spark might have temporarily vanished, but long-term, Tesla’s still a winner.  As Ganry says, Tesla’s  technology is so disruptive that even he’s tempted to buy shares at this still-high level.

Categories: Tesla, Videos

Tags:

Leave a Reply

8 Comments on "Saxo Bank Explains Why The Sparks Currently Gone From Tesla Motors – Video"

newest oldest most voted

Remember these guys have an agenda; Their job is to help move stocks up and down…it’s called “churning the market.” Wall Street bets on the market going up and they bet that the stock will go down. Our stock market is now a casino and there are no investors, just gamblers.

Lol

I didn’t know Tesla officially announced Panasonic was the gigafactory parnter. I thought they just gave a letter of intent.

I am following development of the gigafactory quite closely and thats is my understanding as well…

It will be well into the 2020’s before Tesla’s production is at a level to justify the current stock price. Tesla’s valuation is based on expectations, and thus very susceptible to emotions and mass psychology. That’s why this stock will continue to be very volatile and trying to interpret these price swings is a futile excercise.

Typical headline mismatch. It’s almost like we are going back to days of Hurst and Yellow Journalism. What the analyst had to say was contrary to it’s, the headlines, implied negativity. Has Tesla lost it’s spark? Apparently not as he says it’s still a buy, and their long term view is positive.
Another factor not even mentioned is that growth momentum stocks, in general, have been slammed lately. The Russel is down something like 40%, and is considered by many to be in a bear market.
He thinks it’s fairly valued.
A little pricey for me, but when you think that a few years ago it ipo at around $15,
and as late as last May it was still in the 30’s. Now is the sky is falling because it is less than $200 a share.
@arne-ni points are well made. It’s very different than the sort of stocks I own.

In shocking news: Volatile stock is Volatile.

If an investor wants to invest in a stable, well-established company with centuries of history, invest in something like Lorillard Tobacco (TO) which was established in 1760. Or Dupont (DD), established in 1802.

If you want to take the risk of investing in a fast growing recently IPO’ed company with a high potential for growth, then expect Volatility, and don’t even bother trying to assign reason or logic to any specific bout of volatility up or down. TSLA stocks have volatile up and down moves because it is a relatively new, volatile stock in a relatively new company that keeps changing its business operations relatively rapidly.

By definition, it is going to be a Volatile stock, and the price will be Volatile. That’s what volatile means.

Exactly.