Is The Hype Behind Tesla Stock Warranted?


If you are someone who is looking at the trend and thinks that Elon Musk can do no wrong, boy, do we have some words for you. 

As Nikhil stated at the start of his explanation, he invested in Tesla stock because it was towards the bottom of the price window. Meaning that he bought it while the market was down – ensuring that he would maximize any potential upside. He did mention that if he had the option, he would have purchased some when he was a freshman in college. With that being said, he does not recommend jumping on the Tesla bandwagon while the stock is going through a historic rise in its valuation. Instead you should be looking at other ways to invest your money that might yield a safer overall return. 

Valtteri went into Tesla by looking at how they are overvalued as a company. If you compare them to any other company within their industries of technology and automobiles, it is clear that Tesla is dangerously overvalued. Valtteri brings up that they are about 200 times that of where they should reasonably be. That in a large part can be attributed to the rabid fan base that Tesla and Elon Musk have been able to garner over the years. Taking this fanbase and the disruptive nature of Tesla’s business model, it is easy to see why they are sitting pretty with that valuation. With that being said, Valtteri believes that in due time the market will catch up to what Tesla should realistically be valued at. He says that when that happens, THAT is when he will pounce on the stock and walk away with a few shares of his own. 

But until that time comes, Tesla Stock will continue to be OVERRATED!

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