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Pundits yammer like children: Tesla investors have none of it

Once again, the headlines are distressing for owners of Tesla (tsla) stock, and once again, it takes no more than cursory reading of the accompanying articles to realize that nothing negative has happened . I have described this phenomenon before - how apparently adult pundits turn to sugar addled toddlers when they come across any reason to bash Tesla, no matter how stupid .

There was this one, from our friends at Forbes: How Much Could Tesla's "Infinite Mile Warranty" Cost The Company?

And this one, from Barron's: Tesla Motors: Will Longer Warranties Sink Its Stock?

Since fairness deserves fairness in return, I allow that the actual content of these articles is balanced, but that makes the negative headlines appear even less called for. Not for the first time, I point out that publishers with a conservative orientation are far quicker to bash Tesla than others; and, as the history of the company proves, far quicker than they should be. It turns out that CEO Elon Musk had already given the world the straight story on Tesla's website:

"To investors in Tesla, I must acknowledge that this will have a moderately negative effect on Tesla earnings in the short term, as our warranty reserves will necessarily have to increase above current levels. This is amplified by the fact that we are doing so retroactively, not just for new customers. However, by doing the right thing for Tesla vehicle owners at this early stage of our company, I am confident that it will work out well in the long term."

Not for the first time, Musk made a decision based on what was right for the company in the long term . It's that concept - the long term -- that seems to boggle the minds of Tesla's critics, yet the fact that TSLA shares are flat on the day suggests that the long term is exactly what Tesla's investors are in this for.

My guess is that these critics are not those who are specifically short TSLA stock, (I would trust them to reveal such a conflict of interest) but rather those who are long big oil company stocks. And I don't think they are motivated to bash Tesla because Tesla threatens big oil (if it can be said to, the threat is very far down the road). I believe they do so because Tesla threatens their peace of mind. The burning of oil-derived fuels in combustion engines is, always has been, and always will be terrible for the environment. It contributes to smog, health problems and global warming. But everyone wants to drive, and oil is absolutely necessary to make that possible…right?

Tesla exposes the lie for what it is, and as such, indicts those who have been hiding behind it all their lives. Perhaps we humans can be said to be fools and children all, but nothing is more likely to earn our ire than the debunking of our vital lies, whoever we may be. I can only say this to the pundits out there who still think they can grab on to any piece of news and use it to scare down the price of Tesla stock , try to remember, next time, that you are, in fact, addressing adults. And moderate yourselves accordingly.

Julian Close has been a business writer since the first day of the twenty-first century, having written for PRA International and the United Nations Department of Peacekeeping. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. He became a stockbroker in 1993, but now works for Fresh Brewed Media and uses his powers only for good. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC .

This article was originally published on MarketIntelligeneCenter.com

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


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

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