If you have been sitting on the sidelines considering buying Tesla stock, now may be the "purchase opportunity" you have always dreamed of. The stock has dipped to lows not seen in years. In fact, Tesla's stock has not been this cheap since Barack Obama was POTUS. That seems like so long ago, doesn't it?
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Yes, the last chance you had to buy Tesla's stock at this price was January 6th, 2017. At the time of our story, Tesla stock was trading at $233 per share. This price is now "discounted" from the high point of $383.00 in June of 2017. Tesla stock is valued at just 60% of its past high point. To say that the stock is presently at a low point is an understatement.
Why Is Tesla Stock Down? - Failed Sale To Saudi Oil Money
One reason Tesla's stock is not valued at the $420 stock price Elon musk promised is that Musk planned to sell the Tesla to Saudi oil interests to help the world's largest producer of crude oil greenwash its abundant cash. In the end, Elon Musk's imaginary deal fell through, landing him in continued hot water with the SEC over false promises. Are you happy or sad Elon Musk didn't sell out to big oil to prop up Tesla's financing? We vote glad his crazy plan failed.
Why Is Tesla Stock Down? - Lower Car Sales
Another reason investors have devalued Tesla is that the automaker's sales are lower now than in the second half of 2018. Declining sales when you are an up and coming company are always a bad sign. Who else remembers when Elon Musk was promising investors "exponential" sales growth? Ahh. Those were the days...
Why Is Tesla Stock Down? - The Company Is Running Out of Cash (Again)
Tesla was so short of cash this time last year, Elon Musk told a fan-site in an interview that the Tesla was "single weeks from death." That was before the Model 3 production line was fully operational. It is now in full swing, and guess what? Tesla is again short of cash and scaring the daylights out of investors.
Why Is Tesla Stock Down? - Solar City Is Collapsing (Again)
Tesla's Solar City has been taking deposits for its innovative and imaginary solar roof shingle now for two years. At last count, Tesla had outfitted 12 homes with the new shingles. Not 12 million. A dozen. Tesla's other solar products have also failed in the marketplace. Nobody is rooting harder for Tesla's solar business to succeed than the folks in Buffalo where Tesla has one of its solar products factories. The local paper this month reports that Tesla's solar products installations are at a lower rate now than in 2014.
Stock prices are high when investors have confidence in a company and when the fundamental numbers on the balance sheet are looking good. Tesla presently has neither in its court. Who is ready to make a bold play and buy in big?
Author Note: The author has never owned Tesla stock. He also does not light campfires with one hundred dollar bills.
Image Notes: Stock graph courtesy of Google and NASDAQ. Othe images by the author. Reproduction with permission only.