Tesla Inc (NASDAQ:TSLA) is nowhere near turning a profit and with a stock price of over $300 a share and trading at a multiple of almost five times its sales, it’s an expensive stock to own. Year-to-date the share price is up more than 45%, but lately it looks like the hype has cooled as investors have started to sell-off the stock.
In the last six months, Tesla’s stock has declined 14% and has failed to sustain any sort of recovery.
Elon Musk has recently come out and said that Tesla’s future plans will involve an electric pickup truck. There was no definitive date besides that it would be built after the Model Y, which is expected to be out in 2019. However, the company has generated a reputation of being late on delivery and investors may be a bit skeptical when it comes to dates.
Tesla might be the ultimate growth stock with all the potential that it possesses. The question is how long it will take for the company’s vehicles to make a real dent in the industry and account for significant market share.
Electric vehicles look to be the future, and Tesla is at the forefront of the movement. The stock may be down, but I wouldn’t count it out. The company is still in its early-growth stages, and given that it had $7 billion in sales last year, that could present investors with a lot of upside. This could be an opportunity to buy a great stock on the dip.
