With technology superstar Tesla, Inc (NASDAQ:TSLA) hitting new incredible highs, now approaching $1,000 per share at the time of writing, many investors such as myself are left shaking their heads wondering how this valuation is possible, but also wondering how much more rocket fuel is available to drive share prices higher in the next 12-24 months.
Tesla is a company that has made massive strides to become a leader in the electric vehicle (EU) revolution, completely revolutionizing the way the average person views EU options, spurring competitors to jump into this market and offer options as well. Tesla has fought through a very difficult period of time in which short sellers have continued to campaign against what many view is an unrealistic valuation for the automaker.
The fact that the company’s share price has risen so quickly has led to covering by short sellers, which has added fuel to the fire and resulted in truly incredible gains.
Despite all this, Tesla continues to be one of the most shorted stocks on all U.S. exchanges, as many view the valuation the market has placed on Tesla as a pipe dream, given the lack of earnings since the company’s inception, and a number of headwinds in 2020 which are most certainly not being priced in at this point in time.
I am of the camp that believes Tesla is a story stock which has been on a similar ride as many Canadian cannabis stocks in 2017/2018, with reality simply taking a while to set in for investors. I would encourage all investors to trade carefully with this company.
Invest wisely, my friends.
