Elon Musk has tried his best to reinvigorate investor interest in his company. Unfortunately, he just does not move the needle like he used to. Maybe it was the fact that he tweeted false rumors of the buyout. Maybe it is just time the investors are now seeing the reality. TSLA is a cash burning machine that has immense potential, and a lot of hard times ahead. The growing pains are still here and the company is still struggling to churn a profit. Since the Nasdaq told them to no longer report using a Non-GAAP metric, the truth has slowly been brought to life. TSLA can’t turn a profit. Now the stock is at 52-week lows and could start trending lower.
Now I will say that I believe that Musk will do everything he says. I am unsure of the timeline he gives, but I do think he will be able to pull off. I am a huge fan of Elon Musk. We had a saying around here “Never fade the Musk”, but those days are long gone. Jim Chanos is finally showing he is right for the time being, but in the long run, it will be Elon laughing his way to the bank. Until then, expect TSLA to continue their weakness in the near term. Shouldn’t be too long before the stock rebounds.
