Everybody loves a lottery ticket. People will weekly put down their hard-earned money for a 1-in-175 million chance of being rich.#-ad_banner-# And that is the kind of fervor that has driven shares of Tesla Motors (Nasdaq: TSLA) up more than 450% over the past year. Sure, the automaker is increasing production and profits are increasing, but there is nothing that can explain the surge in the stock price like good old-fashioned irrational exuberance. For investors who got in at the ground floor in 2010, congratulations. For those that have recently bought into the shares and are hoping on another quadrupling,… Read More
Everybody loves a lottery ticket. People will weekly put down their hard-earned money for a 1-in-175 million chance of being rich.#-ad_banner-# And that is the kind of fervor that has driven shares of Tesla Motors (Nasdaq: TSLA) up more than 450% over the past year. Sure, the automaker is increasing production and profits are increasing, but there is nothing that can explain the surge in the stock price like good old-fashioned irrational exuberance. For investors who got in at the ground floor in 2010, congratulations. For those that have recently bought into the shares and are hoping on another quadrupling, you may want to read on. You thought the car fire was bad Shares of the $19.6 billion company tumbled 10% in the two days after an Oct. 1 video showed a Model S on fire in California. CEO Elon Musk eventually identified the cause of the fire as a loose piece of metal from a passing truck that punctured the car’s battery. The National Highway Traffic Safety Administration has said it will not investigate the incident, but shares of TSLA still have not recovered to their pre-video high. Worse than the car fire, however,… Read More