Quote:
Originally Posted by JST
I dunno. You have to ask undefined. I don't think anything that's happened over the past few days undermines the long-term prospects of the company, which I think are pretty damn compelling. But the market moves to a different drummer.
On the 3rd fire, the rumor is that it started after the car ran over a tow hitch. Would that have caused a fire in a "normal" car? Eh, probably not. But it may well have resulted in similarly disabling damage.
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Of all the reasons to buy or not buy a Tesla or its stock the fire thing seems the most irrelevant. Every car catches fire in the right type of circumstances. A scenario that might have caused a fire in an ICE car might not with a Tesla and vice versa.
But the fact that the stock moves so much on trivial events reminds us all that it is a volatile stock that can have large moves for little reason. I agree with JST that if you like the long term prospects buy and hold (maybe don't even check the price regularly), but trying to speculate on the perfect "buy in" point is impossible. I do think they had an unusually long run of good luck where there was almost no "bad news", which always made me kind of nervous. Cause when the shoe does drop (and you know it will) the fall is harder.