Thread: Financial News
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Old August 20, 2020, 03:09 PM
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zman zman is offline
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Originally Posted by tonoy
Someone give me a quick analysis on Tesla. Would you buy it at its current price if you are sitting in on lots of cash?
Based on the current stock price TSLA is extremely overvalued. In my analysis even in the best case scenario the current price cannot be justified for another 5-6 yrs. Yet Tesla is one of the leaders that will dominate the next decade like the Apples and Amazons of the world. Also the stock will undergo a 4:1 split next week before it's included in the S&P. Therefore people won't care about its valuation, they will just want to own a piece of the pie. So I think it'll keep gaining despite its extreme valuation. My suggestion is to buy 25% shares at a time instead of going all in at once. That way you won't feel the pressure of having paid too much.
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