Tesla Optimism Makes No Sense, Writer Says

Tesla Motors Inc (NASDAQ: TSLA)'s stock is on a tear in the past month, rising more than 42.9 percent. However, according to Business Insider transportation expert Matthew DeBord, Tesla investors are making a big mistake when it comes to the outlook for the coming Model 3.

“This is the notion that the arrival of a $30,000 all-electric car in a market dominated by gas-burning vehicles will be the disruptive-innovation earthquake we’ve all been waiting for,” DeBord explained.

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“Anyone shopping for, say, a Honda, Toyota, Nissan, Mazda, Subaru or for that matter a Kia, is unlikely to have Tesla on his or her radar,” DeBord explained. “Given the miserable sales that traditional automakers have seen with EVs, it will be up to Tesla to prove that the market exists.”

Tesla plans to unveil its new Model 3 at the end of the month.

Disclosure: The author holds no position in the stocks mentioned.

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