The stock definately scares me away.
In 2001 Apple was 7 bucks / share and in bad shape. Well worth the risk. TSLA is 293 bucks and in bad shape. To get the same turnaround story you would need TSLA to reach 53802.
I'm not here to tell you to buy or not buy Tesla. In 2001, Apple was $14 or $1 current share if we account for all the stock splits and the entire company was worth $4 billion. It was not in bad shape. Not even close. All the analysts were screaming the sky was falling but Jobs had everything under control. Apple had $4 billion in cash and zero debt. They just had first losing quarter since Jobs returned and saved them from bankruptcy. Apple had their first failed product under Jobs, the Power Mac G4 Cube. But it was ridiculous how everyone was predicting doom when the company had $14 share in cash and no debt. Wall Street valued Apple strictly at cash level and placed $0 value on everything else.
I only brought up Apple because Tesla is similar cult company and not because I expect Tesla to reach Apple level. Owners of Apple and Tesla products absolutely love the brand and products. That's huge and amazing and shouldn't be discounted. All the money in the world can't buy that kind of brand equity and loyalty. That's every companies dream and probably worth billions alone in free marketing and demand base. The problem with Tesla is they spent lot of money trying to ramp up Model 3 and have run into some road bumps trying to increase Model 3 production. But this is short term problem and eventually, the production issues will be resolved. The demand for Tesla cars and products are strong and increasing as more cars are delivered and people see the cars in person. I don't know any company that went bankrupt because of over demand and customers lining up to buy its product. Companies fail when there's no demand and not when there's excess demand. Tesla is in the driver seat. Tesla has huge amount of work ahead of it building out its battery and car assembly factories. And building the semi, Y, and the roadster along with 3, X, and S. And building and installing solar panels and powerbanks. And developing their Autopilot program so they can have autonomous program that can possibly replace Uber. And building out their Supercharger network. All this is going to require significant amount of money. But one thing I learned hanging out with rich people is that there's plenty of money in the world looking for the next great idea/growth story. As long as there's overwhelming demand for Tesla products, rich people will give Elon and Tesla the money needed to build out his company and vision.
And I don't worry about all the Tesla shorts. They eventually have to cover and buy. I remember a time when Apple had huge short base and nonbelievers too. One of the best time to buy stock in a company is when there's hot new product roll out and there are production issues and all the uncertainty and FUD that comes with it.