Tesla is high by any standard value or technical view.
Here I use the PE ratio as compared to TSLA, AMZN, AAPL and GOOGL and a super stock I am going to call "Amagoogle" to demonstrate just how overdone I think Tesla is.
To summarize, I will show:
How relative P/E (Price to Earnings Ratio) compare. Growth stocks typically have very high PE ratio's , mature industries like utilities and consumer staples tend to be on the lower side. For a benchmark, the S&P 500 PE right now is 37.97 with it's all time high spike at 123.73 and it's low at 5.31. The average is 15.88. Telsa's is currently 1,637 ! multpl.com/s-p-500-pe-ratio
If Tesla had Alphabet's earnings but maintained it's current PE, it would have to trade at $84,708 PER SHARE
If Tesla had Apple's very high PE, it would be trading at $45.50 per share.
If Telsa had a double whammy of Alphabet's great EPS AND Apple's arguably very high PE, Tesla would be at $4,709 per share - but that would mean a growth in earnings of 103.58 TIMES.
It's more easy than that, it's just about supply ad demand in the actual market, if you refuse to acknowledge that, you will miss the biggest rally in the market history.
rbarnesy
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@Alberello, You are right about supply and demand. But eventually, fundamentals come in to play. Tesla has enjoyed a good quarter as it's inclusion in the S&P 500 created automatic demand. This will end as portfolios all get adjusted. Since I started on the floor of the Montreal Stock Exchange in 1987 and throughout my 20+ years as a pro-trader, I have seen this movie over and over again. It WILL end badly for a lot of people.
Alberello_Lee
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@rbarnesy, I agree, but how many time from 1987 the Fed have printed money so fast? In my opinion this is just a preview of the massive devaluation the $ will have, so I will not bet so much on the fact that a correction will eventually erase all our earnings.