Double take time.
Stock takes hit. Is Elon not old enough to remember Osbourne and Kaypro? He's announced his next car will be around $30k vs. the $80k cars he sells today. Pre-announcement of something like this is all it takes to cause a loss of sales.
2 comments:
One factor to consider regarding GM value; the company is in a financial mess, in part due to being heavily committed to a lemon: the Volt.
A possibly bigger factor; the government royally screwed over stockholders and bondholders during the "bailout", which makes investors rather nervous.
As for Tesla... I'm no fan of electric cars, but if they're making money at it, great. I'd be a lot happier if the fed subsidies to buyers ended, though I can't fault a business for taking advantage of them.
Arizona CJ
Stock valuation is certainly not the last word about a company no matter what some people might say.
I just find it a bit weird that a once great company is being closed in on by a startup. I know it happens, it's just a bit jarring since GM until recently, that is most of my life, has been this huge company.
Electric cars aren't a match yet for gasoline cars even if Tesla is making terrific electrics.
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