We have been looking far and wide for opportunities as the world makes a slow transition from gasoline-powered cars to those driven by electricity. Tesla has been the obvious choice for investors as it is one of the few "pure plays" on this secular transition. Those that have been following our trading recommendations know that we take issue with the valuation of Tesla. As a result, we have made a few bearish recommendations on the stocks that turned out to be nicely profitable. To be clear, we like the product and the innovation the company brings to the transportation market. We simply take issue with the market prices of the company's stock in light of the enormous capital demands the company faces as it attempts to get manufacturing on its feet. The company is still has a long way to go as it ramps the Model 3, the car with a huge order backlog. In addition, the company has ambitions to build a factory in China and it will begin working on production facilities for its electric semi-truck.
