It's been a wild year for Tesla (TSLA 12.06%) stock. Mixed sentiment in the media and a wide range of expectations for the company have driven shares all over the place. Within 2015, shares have traded as low as $185 and as high as $283. As the year comes to a close, it's looking like Tesla investors are positioned to outperform the overall market this year. Shares have appreciated 4% while the S&P 500 fell 2%. But even this could change.
All of this volatility, along with company's many announcements throughout the year, was accompanied by plenty of drama in the media. On this note, here are two of the year's worst Tesla headlines:
1. Apple to Buy Tesla for $75 Billion in 18 Months: Calacanis
Apple's biggest acquisition by far was its $3 billion purchase of Beats. For a company with a $600 billion market capitalization, this is a tiny acquisition. It's fair to say, therefore, that Apple is a penny-pincher when it comes to acquisitions.
But angel investor and entrepreneur Jason Calacanis must have been unaware of Apple's conservatism in acquisitions when he bet Apple would pay up $75 billion for the electric-car maker within 18 months.
Of course, Calacanis still has time for his prediction to come true. But chances are that it almost certainly won't.
2. Tesla's Model X Electric SUV Will Cost You At Least $132,000
When Tesla first launched its electric SUV, there was mass confusion about the vehicle's pricing in the media. Major media outlets were suggesting the SUV started at $132,000 when, in reality, the $132,000-priced Signature Series version of the SUV referenced in these articles was already sold out. Even more, before the Model X launch, Tesla had promised a version that started at about $5,000 more than a Model S.
Model X configurator. Image source: Tesla Motors.
The confusion was arguably unexcused. Tesla had clearly stated in a few different ways that the base Model X would sport a much lower starting price than $132,000. Indeed, when Tesla did reveal the exact base pricing for Model X, the SUV started a whopping $52,000 less the $132,000 starting price for the Signature model, or just $5,000 more than a comparable Model S.
Giving credit to Engadget, the referenced headline, which still shows up in Google search results, was soon changed. The new headline more accurately reads, "Tesla's first Model X electric SUVs sell for $132k". Further, Endgadget wasn't the only media outlet making these claims. Many articles were updated in the weeks following the Model X launch to more accurately reflect Tesla's pricing plans for Model X.
Next year will almost certainly solicit more wild predictions and misleading headlines about Tesla. Investors following such a volatile company should consider headlines and opinions carefully, weighing them against available facts. Better yet, it never hurts to skip over headlines in general, going directly to company press releases and SEC filings for information.
