In response to a blog post on the Economist (http://www.economist.com/blogs/schumpeter/2013/11/tesla-motors)

After Tesla’s founder and CEO Elon Musk said “The stock price that we have is more than we have any right to deserve”, the stock plummeted from $170 to $135 in a few days. The recent fires in its award winning Model S electric vehicles have been troubling for both the company and investors.

Tesla also admits that it having some issues in its supply chain involving shipments of the batteries they use in their vehicles. Their newly opened distribution networks in Europe are only going to further strain the supply. However there are some bright spots for tesla as its revenue has increased dramatically in the same quarter last year, up to 431 million from 50 million. Although they are still running at a deficit, Tesla is in a growing market, it’s the speed of the growth that investors are worried about. Growth has been good, but not great; though the Model S has been popular among higher income households.

Tesla will need to overcome some major problems going forward, but if they are able to overcome them, they will be poised to make a major disruption in the automobile market.