Some believe Tesla has become unmoored from its fundamentals, fueled by short covering and the fear of missing out among investors not holding the stock. They worry Elon Musk’s company might be a speculative bubble, Maggie Fitzgerald writes.
“Tesla has gone parabolic,” said Matt Maley, chief market strategist at Miller Tabak. “This is taking Tesla well above a level that would be supported by its current fundamentals. … The stock is going to get absolutely clobbered at some point before long.”
Others contend that the company’s fundamentals and future growth justify the magnitude of the rally. Not only is Tesla a leader in electric vehicles, but its growing battery, solar and autonomous driving divisions will fuel future gains, Pippa Stevens writes, citing investors.
Who knows how it will end, but one thing is undeniable: Tesla right now is a one-stock mania, according to Michael Santoli.
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