Stocks That Will Hurt Your Retirement: Tesla (TSLA)
Tesla Motors Inc (NASDAQ:TSLA) is a stock that I want to like. I really do. I love Elon Musk’s vision for the company, and I can credibly say that Musk and Tesla have done more to promote alternative energy and driverless cars than just about anyone else out there.
When we enjoy an emission-free future in which our cars drive us to work while we browse our messages and sip on lattes, we’ll have Musk to thank for that reality.
The problem is, I’m not sure Tesla is going to be the company to benefit from it. Tesla may or may not even be in business a decade from now. You see, while Tesla might have started the revolution, its larger, more entrenched competitors have been quick to muscle in. Virtually every large automaker is experimenting with driverless technology, and most are working on green alternatives.
Meanwhile, Tesla stock trades for nearly seven times sales … and actually loses money.
So, while I wish Mr. Musk the best of luck — and look forward to enjoying the fruits of his labor — I don’t want to put my retirement at risk by buying the stock.