TSLA Moving

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Today we’re taking a closer look Tesla Motors Inc. (TSLA) , one of the key leaders in the growth stock landscape for this fall. Of the other three glamours pushing steadily higher, LinkedIn (LNKD), Facebook (FB) and Netflix (NFLX), Tesla actually makes something durable rather than provide a service. 

The Palo Alto based company with nearly 3,000 employees makes and sells electric cars. 

The durability of its stock should also be noted. Its price has held up comfortably above its 50-day moving average despite heavy sell volume supposedly related to a knee jerk reaction over a video of one of its cars on fire. A barrage of news and chatter over this “PR nightmare” raised many questions among investors. While heavy selling might suggest a chink in the armor, the fact that the stock hasn’t collapsed to anything more than an apparent pullback tells us there’s real strength in this one. 

Under the hood, the potential to become highly profitable looks very encouraging as the company has grown sales more than  1,400% on a year over year basis, which have come in at $1.3 billion, latest check. Earnings growth remains to be seen with it taking in a mere $30 million over the twelve trailing months, according to Yahoo! data.  Total cash comes in at $746 million with nearly $600 million debt.

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