With everything Elon Musk has accomplished – it’s easy to see why people wouldn’t mind being the co-creator of PayPal, founder of Tesla, and the mind behind SpaceX for a day.
I’m sure we’ve all thought about what it’d be like to be a billionaire…
What we’d buy…
What we’d do…
But what we don’t think about are the headaches that come with it.
And after Tesla’s latest announcement – I can’t think of anybody I’d want to be LESS than Elon Musk.
So, unless you saw it on the news – you’re probably wondering what that announcement was…
Well, it was a doozy.
In the announcement last week, Musk revealed that Tesla (TSLA) would lower the price of its Model 3 – which didn’t make shareholders very happy – however, that wasn’t the only bad news, the Wunderkind also unveiled the fact that his company would close “most” of its brick-and-mortar stores, and the kicker…
Telsa would not turn a profit in the first quarter.
That is what you call a “bad day” …
And how did shareholders voice their opinion of the announcement?
Well, shares of the company tanked more than 8% at one point on Friday – and in case you didn’t realize – that doesn’t exactly mean everything is all sunshine and roses between shareholders and Tesla.
But it’s not all doom and gloom either…
Some analysts are praising Tesla’s move to online ordering – as it brings them more in-line with their demographic and how a business should be run in the 21st century.
Of course – that’s not something that gives current shareholders much hope.
Lowering the price of the Model 3 and doing away with brick and mortar may seem to be pretty dreadful for the stock price in the short-term – but it may pan out and be the reason for big future profits over the long-term.
But for a company that just had to use cash to repay $920 million in bonds – it makes total sense.
Closing stores, no more test-drives, and starting an online store may be a sharp-turn in operational direction – but it’s something that has to be done for the sake of saving money.
These moves make sense to a lot of people…
However, cutting the price of the new car doesn’t seem to be as widely accepted.
Normally, when a company cuts the price of an item – it means one of two things…
Either the item isn’t selling as well as they hoped…
Or there’s a surplus.
Knowing Tesla’s business model – you can almost guarantee that there isn’t a surplus – as Tesla’s manufacturing capabilities sort of make that a tall order… no pun intended.
What’s not being talked about is how this is sort of standard business in the computer world – and how it goes right alongside with what Elon Musk has said he’s wanted to do all along…
Make an electric car that’s affordable for the masses.
These are all things that may be affecting the stock’s current price…
As well as the fact that the SEC has asked the courts to hold Elon in contempt for his “reckless tweets” about the company.
Like I said, it’s not easy being Elon Musk.
What’s funny is – even with all this going on – I don’t think it’s the end of Tesla…
Not by a long shot.
In fact, this may just be a new beginning for the company – and could be the perfect time to buy, if you were looking to get into the company for the long-haul.
Again, I’m glad that GorillaTrades’ recommendations aren’t based on news like this…
I think it’s what makes our system superior to anything else that’s out there right now. We don’t operate on “what if’s” or “what could be’s” – the GorillaTrades system only cares about facts and data.
Generally speaking, rumors, upgrades, downgrades, etc. don’t have much of an effect on our recommendations – my system looks for stocks exhibiting serious technical strength, no matter what the talking heads on TV are saying!
It’s how we’ve become one of the top investment services on the internet.
I’d love to show you how it works – but in order to do so – you’d need to be a subscriber, which is why I’m urging you now, please consider joining GorillaTrades today…
It’s a smart move for both the short AND long-term.
However, if joining isn’t your thing – I totally get it…
But even if that’s the case, you should still do yourself a favor and consider taking a closer look at Tesla as a fit for your portfolio.
It could be a moneymaker.
“Life is too short for long-term grudges.” – Elon Musk