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Saturday, May 25, 2013

Investors Finally Believe in Tesla (TSLA)

The skeptics abounded: a new car company started by a dotcom billionaire? There's no way he could succeed. But, Elon Musk has proved them wrong. Not only has Tesla turned a profit, it has repaid its entire DOE loan nine years in advance!. As Shaeffer's puts it:

Should more options traders turn bullish, an unwinding of bearish bets could translate into contrarian tailwinds for TSLA. In the same vein, short interest represents eight sessions' worth of pent-up buying demand, at the stock's average pace of trading. A continued short-squeeze would be a boon for the outperformer, which is also thriving off the charts.

One thing Tesla's success has revealed: political cockroaches who are in bed with their corporate masters. While claiming that they are “protecting consumers,” the North Carolina legislature has proven it's bought and paid for, probably like cheap whores, by passing a law making it illegal for Tesla to sell directly to North Carolina consumers. As professional race car driver Leilani M√ľnter says in Why We Need to Fight for Tesla:

How can public officials, elected to serve the best interests of the American people, so blatantly go against the oath they swore when taking up the position in public office? The answer is simple and something that we are seeing more of every day: Public servants are no longer a voice for their constituents, but rather puppets for special interest groups and corporations, funders of the next election cycle.

With the stronghold that these groups now hold over our officials, it becomes clear that the only way to get the voice back to the people is to diminish the power that these groups wield. And this is where companies like Tesla come in. By challenging the status quo and not just doing something because it is the way it has always been done, by being inventive and innovative and thinking outside the box, and by listening to the consumer and delivering what they actually want in a way that is convenient for them, companies such as Tesla and Apple are able to bypass the old vanguard and provide the real essence of a free market.

And herein lies why the current institution is so afraid. What these companies are bringing is competition, and yes, it is unfair. It is unfair because for so long these folks in the automotive business, at car dealerships and the oil and gas industry, have been able to make up their own set of rules; rules that, when you look closely, are designed to make them richer at the expense of the consumer. And now along come companies like Tesla and they are re-writing the rulebook and guess what? Consumers are taking notice and like this new playing field.

This is an American-built car that has surpassed all the competition. After all the naysayers touted that "there is no market for electric cars," those same people are calling it "unfair." The competition is very nervous, and they should be. The result is this bill, which, if anything is right in our state, should die in the House.

Tesla has arrived, and North Carolinians should have the choice to buy one if they desire. I plan to place my own order with Tesla soon — before it's made illegal and I am forced to haggle with some car dealer over whether or not floor mats are included with the price of my car.