That means that investors no longer have any gauge of what sales are going to look like in future quarters. While the company suggests that such metrics have less meaning now that it is profitable, investors have to question the decision to stop reporting that number at this moment in time.
With such a swift advance on one quarter of good earnings, investors should be thinking about taking money off the table. The sudden choice to cut back on the amount of information being given to shareholders should seal the deal.
A Car Alternative
Ford is a better option in the automotive space. It was the only major car maker to survive the 2007 to 2009 recession without a government handout or a trip through bankruptcy. Not only is it more reasonably priced than Tesla, it offers a nearly 3% dividend yield (the quarterly dividend was recently doubled) and it has been profitable since the recession ended in 2009.
Although Ford’s shares are up over the last six months too, they are still bumping along at a relatively low level. That makes them appropriate for a turnaround investment. Moreover, Ford’s future is far more clear than Tesla’s, and it isn’t going to miss the electric switch if it ever takes place.
A Technology Alternative
Another option is to switch the technology you are looking at. For example, Clean Energy Fuels Corp (NASDAQ:CLNE) is at the forefront of an effort to move the United States from gasoline to increasingly abundant and low-priced natural gas. It switches vehicle engines from gasoline to natural gas and owns or supplies fuel to around 350 natural gas fueling stations.
The company is losing money and spending heavily on building out its infrastructure, but natural gas is already being used by fleet vehicles like buses and trash trucks. The next big push is to get the country’s truckers to switch over. Clean Energy Fuels Corp (NASDAQ:CLNE) has over 70 natural gas stations built on the interstate highway system ready to go, though only 10 are currently in operation.
If natural gas demand starts to heat up, Clean Energy shares will likely start a swift ascent.
Too Little Knowledge
Tesla’s move to limit the information it gives to investors should raise alarms. The timing is simply all wrong. And the price has risen too far too fast on one quarter of earnings. With no way to tell what the next quarter might look like, it’s probably time to get out or at least book profits. And it’s important to remember that Tesla isn’t the only way to play the vehicle market.
The article Is The Backlog Gone at Tesla? originally appeared on Fool.com.
Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Clean Energy Fuels, Ford, and Tesla Motors. The Motley Fool owns shares of Ford and Tesla Motors. Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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