GOTHENBURG, SWEDEN - 2019/09/14: An American automotive and energy company that specialises in ... [+] electric car manufacturing Tesla logo seen in Gothenburg. (Photo by Karol Serewis/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty ImagesInvestors in iconic electric vehicle company Tesla TSLA should take heed: The stock is overvalued. Tesla: Great Company, Too PriceyWhile Elon Musk’s company has managed to pull off the improbable — supercharging the longstanding dream of making electric vehicles available to the mass market — the math behind justifying the current stock price makes little sense. If the market as a whole is overvalued then surely a stock trading at almost 10 times higher (on a P/E basis) is overvalued? Odds Against Tesla Making Enough Money To Satisfy InvestorsIn this case, the answer was that Tesla was 55% likely to fail to meet the required profit level, Koski says.

Source: Forbes February 16, 2021 12:11 UTC