Five stupid reasons to hate Tesla today


There's always a reason to hate Tesla Motors ( TSLA ). When I first identified TSLA stock as a bullish play when it was trading in the low $40 range, I was mocked by one of my oldest friends for succumbing to my inner bird-and-bunny nut and embracing a maker of glorified golf carts, but I held firm. When Tesla model-S sedans were burning brightly on YouTube , I held firm. When Tesla sales were banned in NJ , and when analysts claimed that the company could never increase its production due to the total impossibility of raising the world's output of lithium-ion battery packs, I held firm.

You might have missed some of the newest reasons to hate Tesla, since they have popped up only in the last few days or weeks, so for those of you who's lives don't revolve around stock-related newsfeeds, here's a quick rundown.

Reason One: Tesla is being sued by Zhan Baosheng for supposedly violating Zhan's previous Chinese copyright of the name Tesla. This one is stupid because the Chinese government wouldn't be allowing Tesla to do business in China unless they wanted Tesla there. They also would have provided some assurance to Tesla that Tesla would be allowed to operate there. Whatever the merit of Zhan's case, it, and he, will be tossed out on their ear long before they are allowed to embarrass the Chinese government in front of an important guest.

Reason Two: A Tesla model-S was involved in a major accident in Hollywood, in which seven people were injured and the car itself actually split in half. This one is stupid because it doesn't say anything negative about the safety of the model-S. A fool tried to steal the car and crashed into oncoming traffic at a reported speed of 100 miles per hour. He lives to be a fool again another day only because of the incredible engineering of the vehicle he stole. I extend my best wishes for a full and speedy recovery to his innocent victims.

Reason Three: Musk is leaving Tesla. This one is stupid because no, he isn't .

Reason Four: Demand for Tesla's has plateau. Again, no it hasn't. In a recent note, Barclay's ( BCS ) announced the strong sales in China should offset any weakness seen in Europe. Also check out this recent good news from Robert W. Baird analyst Ben Kallo , who says that state legislatures are facing pressure from "all political parties" to change state laws to allow for direct Tesla sales.

Reason Five: TSLA stock topped out above $250 in its March rise, but found a top just below $240 in its rise in late June. How can I say this? This is stupid because it sounds like a thing but isn't one? Because no shred of evidence suggests that the situation described is a bearish indicator, or any indicator of anything at all? Because technical analysis is what financial journalists churn out when there is no news and they can't be bothered to have actual opinions? If you are interested in the full case against technical analysis, I've given it my best shot here .

In the meantime, those are the best stupid reasons I can think of to hate Tesla today. I'm sure that for those inclined to hate it on general principle, they should be more than sufficient. 

This article was originally published on

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: TSLA , BCS

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