Tesla (TSLA) motors is now a household name. Because of aggressive advertising, a green vision for the future, and a history of excellence and problem solving, Tesla appears to be an auto company that is here to stay. With a few minor but predictable dips in stock value, Tesla has continued it ascent to become one of the most prominent and most patronized electric car manufacturers on the planet. Even so, a recent dip in it stock has cause some concern (and even panic) among more conservative investors. This recent dip, which occurred this January, is only part of the picture, however. Below of some factors that will hopefully ameliorate the concerns of many Tesla investors.
- Because of a missed deadline in car delivery (5,000 out of a total 50,000 vehicles) Tesla’s stock dropped by 7% in January of 2016. It is true that investors should be concerned when such a thing happens. However, they should also keep in mind that this is a short-term problem. Many car companies have missed delivery deadlines by far greater margins (as high as 50%), suffered a dip, then have seen their stocks climb to record numbers. For a company like Tesla, this is far from an insurmountable challenge. In addition, it is an opportunity for more adventurous adventurers to buy more stock as a premium.
- Tesla recently announced they would hire 4,500 new employees. This will certainly help with the vehicle shortage described above. It should also increase consumer confidence, which will in turn drive stock prices back up. More employees means more innovation and faster production.
- One should also look at Tesla’s corporate profile in light of the impending fossil fuel crisis. While oil prices are at record lows right now, that will not last forever. Any company that can focus and set its goals behind fossil fuel dependency (while maintaining Tesla’s level fo success) is worthy of an investor’s attention. These factors indicate Tesla is here to stay
These factors indicate that Tesla’s stocks will not only recover from this minor shortfall, but that they will also continue to grow. Even the most careful investors should take a “wait-and-see” attitude when it comes to this consistently successful, cutting-edge automotive company. Its stock is like its company: silent and effective fromTesla motors.
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