Tesla’s shares have always traded at a premium valuation, which makes sense for a high growth start-up in a very large industry. When comparing Tesla’s valuation vs. other automotive companies it appears that the company’s stock could be cut in half from its all-time high. Tesla’s stock valuation vs. competitorsTo get a feeling on how far Tesla’s shares could fall; one measure would be to compare the company’s market cap to revenue ratio since it doesn’t generate meaningful profits. This would put the shares around $180 or more than half below its December 13, 2018, close of $376.79 and almost half of its January 11, 2019, close of $347.26. If the stock remains below its recent support level of about $295 for a few days its next meaningful support is around $250.

Source: Forbes January 23, 2019 20:15 UTC