Bears Already Love Tesla Motors Inc (TSLA)’s New Model, Bulls Will Have To Wait A Bit

Tesla Motors Inc (NASDAQ:TSLA)’s stock is down by almost 13% during the month, but it spiked impressively when the markets opened today. Its shares’ price is up by little more than 3.5%, close to the $249 spot and, according to TheStreet, this shift has a lot to do with Elon Musk’s recent announcement that a new model, the Model D, will be unveiled soon. The speculated date of release is set to October 9, until more concrete information is made available.

Tesla Motors Inc (NASDAQ:TSLA)’s a unique company in a lots of ways, which work both to the benefit and detriment of the car manufacturer. In 4 trading years its stock price got some 12 times larger, this is a tremendous growth for a company, but investors fear that it resembles too much a bubble to give in to the temptation of expecting a similar future. Tesla Motors Inc (NASDAQ:TSLA)’s growth in revenues is way beyond the industry’s average, partly because its competitors can’t grow much fatter and partly due to its relatively small sales numbers in the first place.

Despite the fact above, there’s the concern of diminishing net income from -$30.50 million to -$61.90 million for the second quarters of 2013 and 2014 respectively. However, this is just because the company is still a start-up, even if it has a relatively long history. Now, this is where predicting anything about its future is cumbersome, at best. The Gigafactory is a huge upcoming project that Tesla Motors Inc (NASDAQ:TSLA) has put its hopes on, but it can do more than make investors wait.

TheStreet Ratings team has the stock on a C- rating, which would mean that there’s too much uncertainty beneath Tesla Motors Inc (NASDAQ:TSLA)’s price fluctuations to accurately predict any of them. In any case, there should be no rush in making assumptions about the company as its history is quite poor in details that could help shape its future.

Disclosure: none

Free Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.