Just to bring my reply to Solvent to the top of the comment pile here:
Hi Solvent,
Most everything you say checks out…
The recall is documented by Bloomberg here:https://www.bloomberg.com/news/articles/2020-10-23/tesla-is-recalling-about-30-000-imported-vehicles-in-china
Recalls are not ideal but are effectively routine in the automotive industry. Every single car I have had (Hondas, Toyotas, Subarus - all known as high reliability cars - and now a Tesla) have all had recalls associated with them. Tesla is my first all-American designed in America, built in America car - and it beats the living crap out of every car I’ve had.
The recalls did not affect my overall perception of quality of any of the cars. So investors supposedly selling on recall news means they are not very informed or educated.
But Solvent, I have not found any news reports of anyone saying Tesla’s Q3 was “uninspiring” - but I would NOT doubt that many say that whether it was true or not - a la Trump. Just say a lie enough and you and others begin to believe it. Right?
Instead I found a normally skeptical and harsh media publishing these kinds of news reports:
Tesla posts record results, ‘next phase of growth’ in focus
https://www.foxbusiness.com/markets/tesla-profits-sales
(Note this is Fox News who hates Tesla and Musk)
Tesla Is Raking in Big Profits
https://www.fool.com/investing/2020/10/23/tesla-is-raking-in-big-profits/
Tesla’s EVs Are Really Profitable. Why Its Stock Could Trade at $720.
https://www.barrons.com/articles/teslas-evs-are-really-profitable-why-it-could-trade-at-720-51603462200
Tesla ‘left the old-school automakers in the dust,’ Jim Cramer says
https://www.cnbc.com/2020/10/22/tesla-left-the-old-school-automakers-in-the-dust-jim-cramer-says-.html
Tesla wows on latest numbers
https://techcrunch.com/2020/10/21/tesla-wows-on-latest-numbers/
Tesla earns two upgrades from analysts after its stellar earnings report
https://www.cnbc.com/2020/10/22/tesla-earns-two-upgrades-from-analysts-after-its-stellar-earnings-report-.html
Tesla, IBD Stock Of The Day, Nears Buy Point After Earnings Double
https://www.investors.com/research/ibd-stock-of-the-day/tesla-stock-near-buy-point-tesla-earnings/
Finally, the change in stock price you mention is pretty minor, falls deep into the noise category. My best performing stock in my portfolio I’ve stuck with despite an 80% peak to trough drop in price in late 2011 to early 2012 (the famous Qwikster debacle).
So when you mention a 10% drop or so, that is really not so relevant in anyone’s book as far as I know. Stocks always move up and down, and rarely does it mean anything meaningful in the short term.
But in the long term…. Just as a comparison, in the decade since Tesla has been public, Google Finance reports in July 2010 Tesla was priced at $3.48 compared to today at about $415. Tesla today is about 119 times higher than when it opened. That is 11,925%.
So I think decades worth of patience and foresight are worth quite a bit more than a deep quarter by quarter panicking. Don’t you?
;)
Best regards,
ScienceDuuude
