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The Impact of Global Economy on TSLA

Discussion in 'TSLA Investor Discussions' started by hershey101, Apr 15, 2013.

  1. hershey101

    hershey101 Member

    Jan 22, 2013
    New York, New York, United States
    I was just wondering how people think that the recent downturn in Gold prices, combined with the issues with Cyprus, and potential slowdown of the US and global economies will affect Tesla?
    I think that as investors, we need to consider the possibility of a severe slowdown in reservations and demand if the recent trend continues. If the markets retreat from the extremely high levels they are currently at (and its a question of when, not if) then lots of institutional investors, hedge fund managers etc. lose money. Considering that Tesla makes cars that sell for roughly $100,000.00, I think that people might not want to buy such expensive toys during a time of uncertainty and we might see significant reductions in the reservation rate for the company.
    I'm sure that the company won't make any such comments on their Q1 conference call, even if they observe declining reservation rates between now and the call, but how will Elon respond when an analyst asks about this?
    Right now is a critical time for the company, and they need to show that they can produce profits, and keep reservations high in Q2, and onwards, and there is a lot of overly positive sentiment on these forms, but I think we need to step back and take a look at the broader picture. That being said, I'm an investor, and believer in the company. I see the fact that today's selloff did little to upset the price action of Tesla as being a positive, but if investors get burned in other investments, and if commodities start becoming risky, instead of the safe-haven investments they have historically been, then we might see downsizing of investments high risk, volitle stocks like TSLA, and this (combined with some disappointing result in the conference call) might be just what the bears need to bring us back below $40, and plumitting downwards to who knows where.
  2. mitch672

    mitch672 Active Member

    Jul 1, 2012
    Stoughton, MA
    #2 mitch672, Apr 15, 2013
    Last edited: Apr 15, 2013
    I think for many people that are buying $80-$100K luxury cars, the blips up or down in the economy are not as much of a concern, as it is for lower end cars. You can be a "Debbie Downer", and it's all doom and gloom, but where does that get you? A self fulfilling prophecy if everyone thinks that way. The world is, and has been in a global economic meltdown for quite a while, no one it seems wants to give up anything (unions, government programs, etc). Governments around the world are struggling to figure out how to fund it all, the United States calls China a "currency manipulator" (pot, kettle, enough said). Who knows how it will all turn out, global economy fails, the US Dollar is shunned by foreign countries (as the US loses "reserve currency" status). Yep, it's going to get ugly, but, some business's will thrive, some will fail, TSLA will probably be fine in the long term, but might have several difficult years.. Look at Apple, not quite an overnight success, was it? Took 30 years for them to dominate their industry, though several economic downturns (and upturns)

    I think if TSLA drops, it's a buying opportunity, not a time to be a Panic seller. As silver drops, I know I am accumulating, it's going to be the only thing worthwhile to own after total economic collapse, right? :) (getting my Doomsday bunker ready soon)
  3. DonPedro

    DonPedro Member

    Mar 28, 2013
    Oslo, Norway
    In theory, the global economic outlook is relevant to the demand. But I think it would have more of an impact on a well-established product/company. We don't know whether the demand for a Model S will be 20k, 40k, 100k or 300k with the current economic situation. If the global economy causes this "hidden" figure to rise or fall by 20%, how would we even know?

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