The most amazing thing about Tesla

At TheStreet, we had an almost constant coverage of Tesla Inc. (TSLA). This is not a surprise, given the daily flow of news around this polarizing company and its CEO Elon Musk.

So, nearly nine full months in 2018, what is the most amazing thing about the stock up to now?

This almost whatever the news that day, the bull camp and the bear camp think that's another box ticked in the earnings column for himself.

Think about it. When Tesla announced quarterly results, the increases recorded sales growth of nearly 44% year-over-year and a turnover of $ 4 billion. Bears claimed that Tesla had lost more than $ 3 per share. Cash outflows reached $ 740 million, a sign of an imminent bear collapse. However, the bulls were pleased with this result as they were well below the analysts' estimate of the $ 889 million cash outflows. In other words, the expenses were more disciplined and Tesla's financial results (even though they were not excellent) were healthier than consensus expectations.

How about the go-private agreement. Bears did not seem to be defeated for a minute, though mergers and acquisitions may be the most lethal blow to a short sale case. Many have been dissatisfied that Musk seems to ignore the financial markets and regulations that we all apply.

But the bulls did not blink either. In fact, many their were also upset, arguing that they wanted Tesla to remain public so that they did not have to sacrifice their long standing when Tesla walked out of the public market. Of course, this privatization plan has not materialized.

The range of emotions with this stock seems incomparable. This recalls actions like Netflix (NFLX) or Action Alerts PLUS holding Amazon (AMZN), but the argument with Tesla seems to have more longevity. Is it because Tesla threatens massive industries like automotive and energy? This does not help that, in a traditional fundamental perspective, it is not of high quality.

Where to find Tesla stock?

Even analysts are divided. At the last audit, there are 9 purchase ratings, 12 hold ratings and 11 sales ratings. It's almost as mixed as you can get and it was distributed even more evenly before Nomura bought it on Tuesday morning.

Various independent reports have suggested that demand is not being met by demand or production is drying up this quarter. This is in contradiction with what we have heard so far from the company, two months after the third quarter.

Although Tesla apparently missed its target of producing 6,000 Model 3s per week by the end of August, it still came out nearly 35,000 in July and August, according to reports. This puts it on the right track to reach its current target of 50,000 to 55,000 models 3 for the quarter.

So what should we watch for? While the day-to-day news will be unstable – as investors have no doubt seen – I would really like to see how this quarter emerges. Although Tesla will probably not report profits until early November, this is important.

Management has maintained its objectives, anticipating that GAAP will be profitable and that cash flow will be positive this quarter and next. They believe the company can produce more than 50,000 models 3 and a recent update suggests an even more bullish take.

The company said: "We are about to have the best quarter of our history, building and delivering more than double the number of cars last quarter."

In the last quarter, Tesla produced more than 53,000 vehicles, suggesting that it will reach more than 100,000 units in the third quarter. It would be a monster production result. A report suggests that Tesla produced about 53,000 units in July and August. If these reports are accurate, it is hard to believe that it will produce 12,000 North per week to close the month.

If Tesla reaches its Model 3 target, is profitable and has a positive cash flow, the Tesla bulls should find some relief in the quarterly figures. It would also add new credibility to the Tesla management team, perhaps giving some confidence to investors.