Why Tesla Motors Inc (TSLA)’s Real Problem Is its Investors

While these are baby steps toward widespread EV adoption, they are steps nonetheless. Production setbacks, negative reviews, and rising costs haven’t been able to slow Tesla down. In fact, shareholders who stuck it out last year enjoyed the stock’s 19% gain, which beat the S&P 500’s gain of just 13 %.

The lesson here is that patient investors with at least a five-year time horizon are best suited for this stock. If you can’t handle the high-risk, high-reward stakes inherent in shares of Tesla, perhaps a better match would be with a traditional automaker, such as Ford.

However, if you believe in Tesla’s product, technology, and management, than be prepared to own the stock long into the future. Just don’t expect a bump-free ride.

The article Why Tesla’s Real Problem Is its Investors originally appeared on Fool.com and is written by Tamara Rutter.

Fool contributor Tamara Rutter owns shares of Tesla Motors. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors.

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