Tesla Stock Price Plummets

January 14, 2015

11:00 pm

If you prefer to buy low, it could be a great time to grab some stock in Tesla Motors.

The Huffington Post reported today that Tesla Motors‘ stock plummeted nearly 7 percent on Wednesday after CEO Elon Musk disclosed that the electric car maker “won’t turn a profit for another five years”. In fact, Musk reportedly claims that Telsa likely won’t be bringing in a profit until 2020.

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The share price was on track to close at the lowest since May, ringing in around $178. As the saying goes though you have to spend money to make money, and Musk has been doing just that.

“We’re spending a lot of money,” Huffington Post quotes Musk. “But if we were to just scale back our growth and just go for moderate increases in, say, the Model S customer base, we’d be profitable by any measure.”

Recently we reported that Tesla was planning to open a factory in Nevada where they plan to mass produce lithium-ion batteries that power the Model S automobile. Tesla is also looking to release the Model X, a SUV, in the next few years.

It’s my belief, though, that Tesla won’t start turning major profits until they release the long-awaited $35,000 sedan. After all, the majority of car-buyers in the US can’t shell out $70,000 and up for a new Model S.

 

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Will is a Senior Writer with Tech.Co, based out of America’s Finest City: San Diego. He covers all territory West of the Mississippi river, digging deep for awesome local entrepreneurs, companies, and ideas. He’s the resident Android junkie and will be happy to tell you why you should switch to the OS. When he’s off the clock, Will focuses his literary talent on the art of creative writing…or you might find him surfing in Ocean Beach.

Follow Will on Twitter @WJS1988

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