Tesla’s stocks are doing well, despite a market still heading south. I love a good disruptive business model and Tesla Motors has a great one, befuddling industry experts and creating animosity everywhere.
Why does Tesla stocks do well, when the market doesn’t?
There is something to be said about new companies ridiculed, but ultimately, hailing a new business model everyone will have to adopt, one way or the other. The Gandhi quote comes to mind: “First they ignore you, then they laugh at you, then they fight you, then you win.” While, this might simplify the notion that Tesla’s business model is a thorn in the side of most carmakers, and now, utilities, marketing companies, and much more, it spells doom for traditional industries lagging behind, with bright red neon lights. Those unwilling to change or adopt, are usually left behind kicking and screaming. The Tesla stocks continue to defy logic, while the rest of the market heads south.
Tesla stock do well, despite not being profitable
Herein lies the rub, the Tesla stocks do well, but the company isn’t profitable. Although, despite the cheerful and optimistic message we are bombarded with, the economic recovery is much like the Loch Ness monster. You hear about it a lot, but no one has really seen it. Tesla’s stocks continue to do fairly well, while the market has stagnated for years. The puzzling part is that Tesla Motors isn’t profitable… yet. In our last article, we covered three key points that explain part of the rally behind the Tesla stocks. Own you production, surround yourself with key, intelligent investor who understand battery technology is a long term stock winner, and use available, proven technology. Tesla is about potential and strategic deployment, something big corporations lack these days.
This dramatic, yet highly sensible business model explains why the Tesla stocks defy the current market trend. Tesla Motors shows incredulous industries that times have changed and corporations must adopt by changing their business models. Unfortunately, they don’t and continue to insist on going back to the way things used to be, before the 2008 crash. So why did the crash happen, then?
What helps the Tesla stocks above market trends?
Tesla Motors offers what most other company don’t, hope backed by a believable product and service. In short, it shows great potential for the future. With its high demand it can’t keep up with, including the not-available Model X, its growing Supercharge networks, its media blockbuster Gigafactory, its emerging Chinese market, the Model III only a few years away, and more, Tesla is showing you can do much with little revenues. By putting all the strategic parts in place today, it is set to dominate many industries tomorrow, while most companies are trying to figure out how to go forward.
Markets fluctuates and companies come and go, but Tesla is a reminder that extreme measures must be taken by those companies insisting on going back to the way it was. Tesla stocks will continue to do well, despite market trends, simply because it shows hope for the future, a real, tangible change, and a much welcome new business model.