Shares of Tesla (TSLA), Elon Musk’s electric vehicle company, aren’t priced for perfection. They are valued as if the sun, moon and stars were in perfect alignment.
As I noted in a post for InvestorPlace, Tesla faces huge challenges such as increasing battery production, broadening its product line an increased competition from conventional automakers. From the story:
While Tesla certainly is innovative and its CEO, Elon Musk, is among the most colorful, many people seem to forget that TSLA hasn’t yet made money on an unadjusted basis and might not for some time. Tesla’s costs will skyrocket in the coming years as it faces increased competition from the mainstream auto industry.
Anyone who is tempted to buy TSLA and can afford it should buy one of the company’s vehicles. By all accounts, they are among the most reliable ever built notwithstanding the reports of vehicle fires. If that idea doesn’t work, try lying down until the urge to buy this highly risky stock goes away.