The electrical pioneer Tesla’s soaring high on the stock exchange is steep – possibly too steep. The Tesla stock exchange valued at $59 billion in January 2018, and it is already $260 billion today. An increase of 340% in two and a half years. Tesla is rated higher than BMW (€39 billion), Daimler (€44 billion), General Motors (€32 billion), Fiat Chrysler (€14 billion) and VW (€74 billion) combined.
Despite all the fascination for the pioneer Elon Musk, who, in addition to the electrification of the automobile, is also driving the development of space, there are three tangible reasons that suggest that Tesla can not fundamentally justify this hype.
“Despite the slightly better second quarter, Tesla stocks are still heavily overvalued, as comparisons with industry leaders Toyota and VW show, which together are less valuable than Tesla.”
John Murphy of Bank of America puts it even more drastically:
“We believe Tesla’s upward spiral is driven by the stock itself rather than the fundamentals. The higher the share rises, the cheaper it is to finance this oversized growth, which is then rewarded by investors in the form of a higher share price. The current share price is detached from the fundamentals.”
Conclusion: The future is sold on the stock exchange. And sometimes the time afterwards.