Also, Musk is smart enough to know it’s hard to effect big change without big money. Musk is worth some $12 billion, but his Tesla stock holdings represent nearly half of that. Letting TSLA burn to the ground wouldn’t further any of his goals, so he certainly wouldn’t be the one striking the match. Thus, it’s easy to believe Musk’s insistence that “We believe that applying the open source philosophy to our patents will strengthen rather than diminish Tesla’s position in this regard.”
So, What Does This Mean for Tesla Stock?
Tesla has other concerns on the forefront — for instance, I’m not exactly thrilled that established, quality-producing BMW is getting generally favorable reviews for its electric i3. It’s one thing to laugh when comparing the Model S with a Nissan Leaf or a Chevrolet Volt … but it’s another when a German luxury powerhouse comes knocking on your door.
I’d say the Gigafactory gives me the most pause, however, and that’s because (as I’ve mentioned before) I’m typically pretty risk-averse and hate dealing with the fun unknowns of innovative, untested, multiyear, multibillion-dollar projects.
Still — and maybe this is the worst reason to invest in (or keep holding) a particular stock — I remain bullish on Tesla if only because it hasn’t let me down yet, and Elon Musk & Co. haven’t really given me a reason to think it will anytime soon.
Besides, international expansion continues to go swimmingly, the Model X is now lined up to come out in early 2015, and the Model E is expected to be competitively priced against the Audi A4 and BMW 3-series.
As we hit the halfway point of this contest, I increasingly think of this Tesla pick like I do relationships. After 60% gains and a little turbulence along the way, we’ve officially passed the wild, irresponsible puppy-love phase. Now, the conversations have turned a little more serious as we start to think about the uncertain future.
That doesn’t mean that Tesla’s bad. Far from it. TSLA has oodles of potential left.
You just have to be realistic about the potential implosions, and be mentally prepared to cut bait if things go south.
Practically, that means setting stop-losses to protect your gains … though I wouldn’t suggest using that terminology in your next serious convo with your sweetheart.