I would too. Without even thinking about it.
Posted on 11/02/2013 8:04:10 AM PDT by markomalley
Super trendy electric car manufacturer Tesla has seen “it’s biggest one-month loss of market value” according to Bloomberg news.
Tesla lost 17 percent of its value in the month of October. This means that the value of the Palo Alto based company has slipped from its peak of $23.5 billion to $19.4 billion. Bloomberg notes that the company’s loss of value in the month of October is higher than its entire market valuation at the beginning of 2013.
This slide has been blamed on a readjustment of expectations as the company attempts to come to grips with the challenges facing it now that the initial surge of public interest has waned and the company grapples with the realities of the car market. Ben Kallo, an equity analyst for Robert W. Baird & Co. in San Francisco was quoted by Bloomberg as saying “The stock is priced to perfection right now.” Kallo recently downgraded his rating for the stock from “Outperform” to “Neutral.”
The company is facing more challenges including the need to boost production numbers of its models — including an all-new electric SUV. It also needs to expand its dealer network to compete with the likes of GM and Ford. Tesla’s fellow electric car manufacturer Fisker has been hit with high-profile failures, and in October two of Tesla’s S-Models caught fire.
Another issue being faced by Tesla is the State of California’s proposed scaling back of zero-emission vehicle credits, possibly by as much as 40 percent.
Speaking on Bloomberg TV recently, Tesla’s biggest investor and co founder Elon Musk said, “The stock price that we have is more than we have any right to deserve.” It appears that the market agrees with Musk. The recent stock wipeout eliminated value roughly equivalent to the GDP of Montenegro.
For the Corvette brand, however, October was a barnstormer. As the new 2014 model hitting the show room, sales are up by triple digits. Automotive news reports:
#GM October gains: #Corvette sales up 237%, #ATS up 120%, #Regal up 47%, #Malibu up 63%: http://t.co/blxZMCBNby pic.twitter.com/HS4y5tVVt9
— Automotive News (@Automotive_News) November 1, 2013
A breakdown of the sales of the new model conducted by Torquenews.com in September foresaw the expected sales surge. Nearly three quarters of ‘Vette buyers are going for the high performance Z51 models.
To further ram home the point that electric cars haven’t caught the public’s imagination, sales of GM’s own plug-in hybrid, The Volt, were down 2.7 percent, selling only 18,783 units in the first ten months of 2013.
A Government Motors vehicle is doing well while a Government Subsidized Motors vehicle is not doing so well?
The lesson is that career politicians got kickbacks for their re-election campaigns and no one will go to jail.
TERM LIMITS ARE NEEDED
That pesky marketplace.
Saw a C7 yesterday in a parking garage. Sweet ride. Tesla? Really? LOL! Maybe they can park them next to t. mac’s green tech “Bilkers” if they ever build one. Sounds like a good name due to the money he scammed for them. Or maybe a “Scamster”.
Simple lesson: Ultra-fuel efficient cars don’t do as well as the price of oil collapses. Gas is down 70 cents a gallon locally.
If I wanted to buy something that would eventually end up on fire, I’d get a box of matches.
A friend just traded in his custom (and multi award winning) 2011 Camaro on a new Vette.
‘Vette Ping.
I would too. Without even thinking about it.
Just slightly off topic - When I bought my 2004 Malibu, the sales guy had in his office a poster with pictures of every Corvette model from 1953 on, with stats about how many were made each year. That poster was a lot more interesting than my car.
The lesson is real simple. The Corvette has been a winner since long before Obammy took GM over.
My step-son has one. Wish I had a 'Vette also.
are you in charge of the Vette’ pings? I bought a 67’ years ago at Barrett-J, and rarely drive it except on my birthday and aside from the Viper, it’s the only 2 cars I wanted ever since i immigrated to the USA.
Wrap your a$$ in fiberglass!
I’m so glad the era of the 1975 to 1983 plastic pachyderms is over.....and I’m a Ford guy!
(As an example, the liberals/Marxists/Democrats have not figured out that despite their deceitful hyberbole, nobody wants to ride the California "high speed rail", which at $68.4 Billion is over half the Golden State's annual budget.)
.
My eye doctor back in Georgia had three Corvettes. Ended up rolling one and killing himself.
No, just pinging another FReeper who has one on order.
Live by the subsidies, die by the subsidies (gone).
They suck you in to get you started, assuming that you won't need the help once you get started.
Tesla’s “profit” was from selling emissions credits to other manufacturers. As other manufacturers do their own low-emissions work, there’s less need for credits.
No car manufacturer or dealer stays in business long with just one model.
“In high school, a friend’s dad had a Corvette. He let us drive it, but only around the big circular driveway in front of the house, not on the road”
Rainman?
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