Tomahawk, WI 10/10/2013 (BasicsMedia) – It is not secret that Tesla Motors Inc (NASDAQ:TSLA) has been through a period of rapid expansion as a stock. It has been one of the most sought stocks in Wall Street. The company has been attractive to investors because it is one of the leading manufactures and designers of electric vehicles in the world. It has just endured one of its worst periods when the stock seemed to be on a free fall after the fire which consumed one of its Model S cars. A car which was listed as the best of 2013, was now thought to be one of the most unsafe and the stock suffered accordingly.

 Has TSLA Been a Bubble Stock?

 This emerging scenario has led some people to conclude that TSLA was a bubble stock, and that sooner or later, it was bound to go through what it is going through now. It needs this period of cooling down to make itself attractive to investors looking for long-term interests or investments. The prospects of any company whose stock is not slowing down, but appears to be constantly spiking is never good according to many investors. If TSLA was truly a bubble stock, then it was probably never attractive to investors  with long term interests in the first place.

 Falling TSLA is Good for Long Term Investors

There is now a very good chance that investors will start pouring back to TSLA now that it is showing signs of stabilizing, and isn’t continuing on its path of non-stop spiking. A bubble stock is often quite dangerous since people buy stock or operate based only on hope and a lot of optimism. The era when tech stocks were the rage everywhere, many people bought them at very high prices believing that they would be worth more than what they paid for them. Later, there was a crash or a loss of confidence which led to a drop in the value of the stock.

TSLA has a lot to thank the fire that razed its Model S car recently. When the accident occurred, there was a lot of negative feedback from the market, and TSLA suffered the backlash. After all, the Model S had just been recently announced as the best car of 2013. It was also considered the safest of electric cars made up to this point. The fact that it could be consumed by fire in the manner which happened, must have left many wondering whether this was a truly viable thing or not. But for this to benefit TSLA, the stock has to slow down gradually and not suddenly.

 Difficult to Determine Right TSLA’s Long Term Price

 It is still too early to predict where the best long term price for TSLA is. This remains to be seen since there are a number of factors which could crop up to interfere with its long term performance. It is very difficult to pinpoint the exact reason why the stock has risen this rapidly. I firmly believe that the stock has benefited from the market and industry which views its top executives, especially CEO Elon Musk, favorably. Based on this fact, I am one of those who welcome the current scenario where the stock has experienced a bit of a fall in recent days.

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