This Firm Just Turned A Companys Stock Into Cryptocurrency

This firm just turned a companys stock into cryptocurrency

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Tesla (NASDAQ: TSLA ) continues to make the news for many of the wrong reasons.

Top 10 Reasons to Consider Investing in Cryptocurrencies in Your IRA

The provocative tweets from CEO Elon Musk continue. Also, seeing the general counsel leave the company after a short stint will not exactly endear buyers to Tesla stock.

However, in a surprise, these incidents drew little reaction from TSLA stock investors. This non-response marks a turning point in Tesla.

Now, investors will evaluate TSLA more on its results, not words or personnel moves. Fortunately for the bulls, these posted results point to likely growth for Tesla stock.

Tesla Still Exhibits Signs of Chaos

Tesla has seen a chaotic Presidents Day week.

The No. 1 Stock for the Crypto Boom - Paul Mampilly

Word came down that Dane Butswinkas, the man who served as the firm's general counsel, announced his departure after just two months on the job.

Source: Shutterstock

Also, Mr. Musk tweeted that the company would build "around ," vehicles in He then clarified that they could make , per year at about 10, cars per week.

However, production estimates remain at ,

Such posts on Twitter (NYSE: TWTR ) call into question the effectiveness of the settlement reached with the SEC. Part of that agreement involved reigning in Mr.

In This Story

Musk's tweets. Issuing and reversing guidance in a random social media post would probably qualify as a violation.

Tesla Stock Has Stopped Reacting to the Turmoil

However, I think investors should also take notice of the reaction, or rather, the non-reaction of Tesla stock.

Karisma karvy com ipo status

In most equities, such news would inspire panic selling. However, in Tesla, it now creates barely a ripple as the stock has seen only a little movement.

I said in an article months ago that Tesla trades on a " vision premium ." I define this as the elevated multiple investors will pay for a new company offering a product or service that will bring fundamental change.

Seeing this news, we become reminded that with vision sometimes comes eccentric behavior.

This firm just turned a companys stock into cryptocurrency

The company's namesake, Nikola Tesla, was also a creative genius who sometimes exhibited quirky behavior. More recently, the same went for Steve Jobs at Apple (NASDAQ: AAPL ).

This firm just turned a companys stock into cryptocurrency

In the case of Tesla stock, we can assume that investors know that Mr. Musk exhibits some of these traits and have come to accept it.

Now, One Can Judge Tesla By Its Results

Reaching this point means a lot to investors.

For some bulls, it dashes the hopes that an errant tweet will bring a buying opportunity in TSLA stock.

Other Topics

However, it also means that we can evaluate Tesla stock based on financial metrics and the popularity of Tesla's cars and solar products. There, I like what I see.

Turning a profit has dramatically improved the outlook on Tesla stock. I did not like the idea of paying over $ per share two years ago when analysts did not see a profit in the foreseeable future.

However, predicted earnings of $ per share for the year make a $ per share price more palatable.

Profit growth offers further help.

Which service is right for you?

Analysts project % growth for this year. Although that growth rate will not hold, they still predict a % profit increase in They also forecast an average growth rate of 35% per year over the next five years.

Hajime no ippo manga 1209 raw

Prospective buyers can purchase this growth at a forward price-to-earnings (P/E) ratio of For a company that can change the way we power our future, I see this as a huge bargain.

The Bottom Line on Tesla Stock

Now that Tesla stock has become more results-driven, investors should look at the massive growth rate coupled with a relatively low P/E ratio and buy.

In many respects, little has changed inside Tesla.

This firm just turned a companys stock into cryptocurrency

The company continues to see turmoil within top management. Also, the company's eccentric CEO continues to exhibit unnerving behavior on social media.

Yet, amid the chaos, Mr.

Survey on user of cryptocurrency

Musk's creative genius and drive to succeed has turned Tesla stock into something I never expected - a bargain. For a forward P/E at just under 33, investors will enjoy triple-digit growth this year, and massive double-digit earnings increases for years to come. On top of that, they will own a piece of the company that will probably change the way we power our world.

This firm just turned a companys stock into cryptocurrency

Thanks to this change in attitude, Tesla stock now brings the benefits of visionary growth without the consequences of the odd behavior that sometimes accompanies that genius.

As of this writing, Will Healy did not hold a position in any of the aforementioned securities.

You canfollow Will on Twitterat @HealyWriting.

More From InvestorPlace

Compare Brokers

The post Why Tesla Stock Investors Have Finally Accepted the Company's Quirks appeared first on InvestorPlace .

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.

Trending Topics

Trending Articles