Tesla (NASDAQ:TSLA) Analysts Say Sell
Tesla’s (NASDAQ:TSLA) shares have soared this year, but some analysts have been-are-remain unconvinced citing the risk of typical production delays and competitive challenges as the basic for the Sell calls.
Pick a time frame, almost any time frame, and Tesla is probably outperforming the market.
The Big Q: Can the stock keep flying high?
The Big A: We all know the future depends on the Model 3, not how many it can sells, or how quickly it sells them and deliver the, but how much it costs to make them, and how much unit profit there is in the sales and service.
It is not enough to show how optimistic customers continue to respond to the Model 3.
One Tesla owner recently said the following publicly: I want the company to meet its responsibility to its customers, whether they are early purchasers such as me, or 1st time buyers.
But, for now, it is Buyer Beware
A litany of other problems I have had include the following:
• The Bluetooth system malfunctioned in multiple ways when used with iPhone and Android phones. Among the many problems I reported, conversations inside the car can be heard loudly outside the car. This can be embarrassing or even dangerous. Tesla acknowledged this does in fact happen, and then responded: “It’s operating as designed.”
• A faulty sensor caused the car to think it was minus 40 degrees, and it just decided to have an immediate “powertrain shutdown” while driving on a city street. I was lucky I was not on the highway. Tesla’s response: “It’s ok for the car’s software to shut off all power. All cars shut down at times.”
• The car frequently needs to be “rebooted” — that’s what Tesla service calls it. The car’s computer gets into a bad state and many random malfunctions occur. The standard remedy is to reboot it, just like when your laptop goes haywire.
• After a late evening, I tried for 30 minutes to start the car. The car controls were completely dark and inoperable. It turns out, the car was updating its software, but it displayed no indication of any kind. Tesla’s response: “we’ll look into it” But, as usual, I didn’t hear back.
The Model 3 launch could signal the beginning or end for Tesla.
Innovative companies are to be commended, and growing pains are bound to be felt by early adopters. But, poor customer service and faulty design can cripple demand. In such a case, a promising company — even one as well capitalized as Tesla — can falter.
My friends have asked me what I really want from Tesla. They want to understand my tenacity in taking this to court. In short, what I want is for Tesla to find its way back to caring about consumer satisfaction.
If that happens, there’s a good chance I would buy another Tesla and this early adopter, so then Tesla owner No. 892 would congratulate the company for winning back one of its 1st customers.” Alain Cohen
Editors Note: Alain Cohen is a successful entrepreneur and engineer in the Washington, DC area.
|NASDAQ:TSLA||362.91||16 August 2017||0.58||363||366.5||362.52||3,405,300|
|HeffX-LTN Analysis for TSLA:||Overall||Short||Intermediate||Long|
|Bullish (0.31)||Very Bullish (0.58)||Bullish (0.38)||Neutral (-0.03)|