Tesla Inc Stock Is All Drama, Which Is Why You Love It

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In the 2000 blockbuster movie Gladiator, the eponymous character Maximus looks to the bloodthirsty masses at the Coliseum and derisively asks: “Are you not entertained?” after a life-preserving victory. The crowd falls silent, realizing what they had become with a young, self-serving emperor setting the tone. What’s that got to do with Tesla Inc (NASDAQ:TSLA)? It’s the same question I’ll pose (again) to current and would-be owners of TSLA stock: Are you not entertained by all the recent volatility-inducing drama? This is what you signed up for after all, right?

Source: Tesla Motors

More Drama

The latest chapter in this sordid saga: The electric vehicle manufacturer’s Model 3 assembly line’s buildout is behind schedule, by about three months. It won’t be producing them at the once-touted pace of 5000 per month until the latter part of the first quarter of 2008, with the company’s own battery gigafactory cited as at least one of the reasons for the bottleneck.

It’s not surprising, truth be told. In fact, what would have been surprising was Tesla being on schedule, considering CEO Elon Musk’s penchant and history for overpromising and underdelivering.

The market was surprised nonetheless, however, with the TSLA stock price plunging 7% the day the bad news was released.

The drama hardly ended there, however. Shortly thereafter, Tesla announced it would be acquiring one of its suppliers, Perbix, as a means of shoring up some of the challenges with the development of its assembly Model 3 line, and as a means of appeasing frustrated owners of TSLA stock. The deal wasn’t announced, however, until after investor lawsuits were planned. Apparently some investors (or at least some attorneys for investors) felt they were duped into taking Musk at his word despite a long string of previous delays and shortfalls.

Were it any other company, the events of the past few days would be eye-popping. When it’s Tesla though, it’s par for the course.

And it should change the way investors look at Tesla.

What is Tesla Really?

I’ve said it numerous times before but it merits repeating now: If you’re thinking of Tesla as a conventional investment in game-changing technology a la Apple Inc. (NASDAQ:AAPL) or Facebook Inc (NASDAQ:FB), think again.

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