Hi,
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.
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.