Why I'll Never Own Tesla Stock
Never is a long time. Saying you'll never own something is a bold statement and probably requires a caveat. So here goes. I'll probably never own Tesla (NASDAQ: TSLA) stock and there are two reasons why.
Before I list them, I should also tell you that selling shares of Tesla was the worst investment decision I've ever made. Those 100 shares I bought (and sold) in 2012 would be more than a 100-bagger if I had held on. Still, despite several compelling reasons to own it, you're unlikely to find the stock in my portfolio.
The first reason has to do with how markets work. No product gets to take over a global market unchallenged. That's especially true for an industry where it can take two to five years to get a new product from concept to the customer. Add in annual capital expenditures of as much as 10% of revenue and you can understand why innovation in the auto industry tends to be slow and very incremental.
Source Fool.com
