hy Tesla's selloff means nothing

Tesla Motors (NASDAQ: TSLA ) is down abot !"# today on disa$$ointing

(in the eyes of the Street) third%&arter reslts hile traders sramble to

mae their mo*es on the big $rie swing+ and the Street analysts rsh to

ad,st their $rie targets+ -oolish in*estors an i ba and rela.

Mr Maret's silliness

Qarterly reslts may be dramati for o*erly ati*e traders+ bt for -oolis

h in*estors+ they're ,st one small $iee of a large $//le hen Tesla re$

orted earnings yesterday+ the eletri%ar maer atally slightly ot$erfo

rmed onsenss analyst estimates That s$ars the notion that gidane

was the ma,or l$rit behind the sell%off And+ in this ase+ that may be tr

e

  ord on the Street was that 01N nmber traing going on o*er at Tesla's

online forms might ha*e indiated that Tesla was ram$ing $ $rodtio

n more ra$idly than e.$eted 2ne analyst e*en seems to ha*e onsidere

d this dbios 01N traing as one of his reasons for boosting his Tesla $

rie target to 3"44 As it trns ot+ howe*er+ Q5 *ehile deli*eries seem t

o be traing only slightly higher than Tesla gided for %% at 6+644+ om$a

red to gidane for 7slightly o*er7 6+444 -or the fll%year+ deli*ery estima

tes were boosted by ,st 644 *ehiles+ from "!+444+ to "!+644

8t does Tesla's ram$%$ in $rodtion really merit a sell%off to the tne

of nearly 3" billion+ ,st bease it wasn't ra$id enogh for the Street9 Te

sla e*en em$hasi/ed in the seond%&arter%earnings all that it doesn't e

.$et to wor ot its s$$ly hain bottlenes ntil "4!

Tesla's growth story remains intat

 

As weely $rodtion rates ontine to im$ro*e+ and Tesla ontines to o

t$erform its own gidane for *ehile deli*eries+ there's no reason to be

lie*e that Tesla's growth story is any different today than it was before th

e om$any re$orted third%&arter reslts Des$ite the Street's emotional

disa$$ointment+ Tesla's Model S remains a blobster+ and its global e.

$ansion ontines ra$idly

The om$any is still s$$ly limited 1n fat+ demand doesn't seem to be a

n isse at all for Tesla 7Demand e.eeds s$$ly+ des$ite no ad*ertising+

no disonts and no $aid endorsements+7 management said in Tesla's thi

rd%&arter letter to shareholders And in*estors sholdn't let Tesla's thir

d%&arter se&ential deline in North Amerian deli*eries worry them+ eit

her Ms e.$lained in the earnings all that reser*ations in North Ameri

a were atally $ se&entially+ as the om$any onstrained North Ame

rian deli*eries in order to flfill ;ro$ean orders

Tesla's maing enormos $rogress on its international e.$ansion ith S

$erharging infrastrtre in Norway already reahing nearly the entire

$o$lation+ <ermany is Tesla's ne.t international $riority Tesla says it wi

ll ha*e half of the ontry o*ered with e*en faster !56% S$erharger

stations by Marh "4!+ and ha*e om$lete o*erage by the middle of "4

! 8eyond <ermany+ Tesla e.$ets that+ by the end of "4!+ 7the entire

$o$lation of the Netherlands+ Swit/erland+ 8elgim+ Astria+ Denmar a

nd L.emborg and abot =4 $erent of the $o$lation in ;ngland+ ale

s and Sweden will li*e within 5"4 m of a S$erharger station+7 manage

ment said in the third%&arter letter to shareholders 1n >hina+ Tesla has

already begn taing orders+ and $lans to deli*er its first *ehile in the

ontry ne.t year

-inally+ at a !4+444%foot *iew+ this sto is ltimately $ried for its more a

ffordable third%generation ar+ whih Tesla >;2 ;lon Ms ho$es will res

onate with the mass maret %% and nothing in the &arter sggested this

story has hanged

  hat shold in*estors do9

 

1'd say the best $lan of ation at this $oint wold be to do absoltely not

hing 1f yo already belie*ed Tesla was o*er*aled+ a !4# sell%off isn't ne

essarily large enogh to mae this growth sto loo entiing 1f yo wer

e already a Tesla shareholder with faith in the om$any's growth story+ t

here wasn't one item in the re$ort that indiated Tesla's long%term story i

s any less e.iting

Demand is hot+ international e.$ansion is nra*eling ra$idly+ and the ot

loo loos as bllish as e*er hile the shortsighted traders mae their m

o*es+ -oolish in*estors an i ba and rela. %% Tesla's Q5 reslts sim$l

y onfirm an e.isting story