The stock price chart (from Google Finance, COH) shows the roller-coaster this stock has been in the last 10 years. In our analysis, we’re going to concentrate on the last 4 years or so and see what went wrong and what corrections we recommend.
In 2010, we would have recommended they stop seeking revenues and start focusing on gross profit margins and gross profit dollars – increase prices and do it now! Over the next 3 years, prices increased, gross profit margin increased by almost 1/3, and the annual revenues declined 24%. These changes made sure the business stayed healthy during a time that could have really hurt their future prospects.
Tesla Motors, the brainchild of the PayPal co-founder Elon Musk, has been in the news recently with their award-winning Tesla Model S, a sedan capable of beating out a Viper R/T in a drag race. But how are their finances?