Tesla Motors? Bwahahah
Tesla Motors IPO'ed yesterday and the stock is up strongly since.
So what do I think of this? The cars are cool, but the company is a train wreck. First, they have no current production. They may have a product to sell in 2012. Secondly, the backer, Elon Musk, is pretty much bankrupt. Thirdly, no new American car manufacturer has IPO'ed and stayed in business since Ford in 1956. Fourthly, they are in a cruel business, where you have to invest huge amounts of capital and the need to amortize that over as many units as possible leads to ruinous price competition. Fifthly, there is electric car competition coming from the established manufacturers.
So am I going to short it? Not yet. This will run for a while on sentiment. CROX ran up pretty high before the crash and this could do likewise. So I will sit on the sidelines and wait for the enthusiasm to run out. Then gravity will reassert itself, and Look Out Below!
The traders may be able to make money on this on both sides if they are adept. The investors are suckers.