I think the biggest issue is Musk in general.
He has big ideas but they don't seem to pan out into something viable.
he is making a ton of money though but it mostly of government subsidies in all this
green eco stuff.
he isn't making money off of the product itself.
once investors stop living in this pipe dream his stocks will trash.
Tesla IS making money off the products themselves. Their gross margins on their vehicles are usually 20-25%, gross margins GM and Ford would drool over. The battery division turned a profit in its first quarter shipping Powerwall and Powerpack batteries from the company’s Nevada Gigafactory. The company also posted a profit this past quarter. The reason why Tesla hasn't posted many profitable quarters is simply because they are a new auto company who invests heavily into future growth by investing heavily in research development and CAPEX. For example they are investing an estimated two plus billion dollars in the Nevada battery gigafactory but will create billions of more future revenue for the company. The business model, much like Amazon, is not short term net profits but long term growth and greater long term profits. As a potential investor I like the model. As someone who likes clean air and water and a healthy planet, I like that aspect of the business plan.
He has big ideas but they don't seem to pan out into something viable.
Paypal-viable product, profitable
SpaceX-viable product with lowest cost satellite launches, profitable even with government corruption that favors much more expensive bids, lands return rockets which many said could not be done which will give them even greater competitive advantage on future costs.
Solar City-viable product with company being the largest solar installer in U.S. in an industry experiencing explosive growth.
Tesla:
*Only successful new American car company in more than half a century
*First EV that utilized lithium ion battery and can go over 200 miles on a charge
*Pioneering and leading the way in developing the EV industry and I think most will agree has accelerated the adoption of EV's which was a primary goal of the comapny
*Best selling and "highest rated by consumers" luxury sedan in the U.S. by a large margin
*Brand's reputation good enough to have almost 400,000 pre-orders in the first week of public reveal of vehicle over a year away from production, something Ford or GM could only dream of
*2017 model 3-accomplishes the company's goal of manufacturing affordable EV's for the masses
*Will be first to have level 5 automation, likely late 2017
*High profit margins on their products and having a supply and not demand problem as well as the ratings and sales of the model S and pre-orders of the model 3, all evidences they have a very viable product.
But yeah his ideas don't pan out, nothing viable. You can always short the stock.