Tesla Motors: Customer Irrationality

When something irrational happens, most try to find a logical reason to explain matters. Sometimes, the reasonable course of action is to simply attribute nonsensical behavior to nonsensical-ness, as Stifel does today on TSLA.

…the reality is, these issues simply do not matter with respect to Tesla’s stock. Tesla sentiment is like a freight train… Tesla has captivated a global audience, some of whom have lost interest in distinguishing horsepower ratings among the dozens of $100k-plus luxury vehicles, others that would have never considered spending six-figures on anything but a house.

Customer sentiment != investor sentiment. When your world is the one of investment, momentum’s physics don’t quite work the way we expect.

 

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