When Back to the Future II came out in 1989, I remember thinking how great it was going to be to own a flying car in 2015. More than 20 years have since passed, and sadly, we're no closer to that dream. (To say nothing of hoverboards.)
I've been even more depressed by the lack of growth we've seen in the electric vehicle arena. This hasn't stopped Tesla Motors
A company's financials generally drive a stock higher. But Tesla's case, they send me scurrying for cover. Remember, Tesla is a very long way from turning a profit.
Revenue growth has hit a roadblock, and despite investments from Toyota and Panasonic
David & Goliath(s)
It's bad enough being the small kid on the block; it's even worse when your competition has a vast network of dealerships, more cash and advertising capability, and the ability to take a significant chunk of your monopoly away.
In my opinion, Tesla simply doesn't have the infrastructure to compete against Nissan, GM
I think the lesson here is that being the pioneer in your field doesn't necessarily create a successful outcome. Tesla still has plenty of time to prove itself and prove me wrong. But right now, people are essentially paying nearly $3 billion for the intellectual property rights of Tesla (which may ultimately prove more valuable than the cars themselves). Barring a major pullback, I don't see how Tesla will live up to expectations.
Fool contributor Sean Williams does not own shares in any companies mentioned in this article. You can follow him on CAPS under the screen name UltraLong. Ford is a Motley Fool Stock Advisor pick. Try any of our Foolish newsletter services free for 30 days. The Motley Fool's disclosure policy just found the strangest sports almanac.