Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Tesla Motors Inc (TSLA) Takes it On Chin, What Next?

The past month has been an up and down ride for Tesla Motors Inc (NASDAQ:TSLA) investors. On December 16, the stock closed around $198. However, things picked up by the end of 2014, with shares reaching as high as $227 and investors hoping for more of the same in the new year.

This optimism was short lived with Tesla falling six percent yesterday and closing at $193 a share.

At the time of publishing, Tesla Motors Inc (NASDAQ:TSLA) is up 1.38 percent for the day, reaching $194.02. While this is better than nothing, the day is still young and nothing has changed to ease investor concerns.

There were a couple reasons for the downturn, including the fact that CEO Elon Musk shared news that company sales in China were less than stellar during the fourth quarter.

Furthermore, he noted that Tesla would not reach profitability until 2020, which is another five years. That is a long time to wait.

The Past and Future

Go back in time to September 2014 and Tesla Motors Inc (NASDAQ:TSLA) was trading at $291. Things were looking up and investors were talking about jumping past the $300 mark by the end of the year. And then the wheels started to come off.

The future of Tesla remains bright, despite the recent setback on Wall Street. The company has a few new models in the pipeline, not to mention the ability to cut costs in a number of ways. As noted by the Detroit Free Press, battery cost reduction is a must and Musk is confident in his ability to make this happen:

“He’s “absolutely certain” Tesla can achieve a 30% battery cost reduction by 2020, bolstered by a massive new battery factory in Nevada, and expects to continue cost improvements after that.”

Musk is still confident in the company and its future, saying that it will be selling millions of cars by the time 2025 rolls around. In the meantime, investors will continue to worry about their money. With Tesla Motors Inc (NASDAQ:TSLA) stock dipping below $200, the days of dreaming of $300 are long gone. What will the next 12 months bring for Tesla stock?

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.