When Investors Want To Believe They’ll Believe

When Investors Want To Believe They’ll Believe

When in a bubble there’s no telling when it may end. Tesla is certainly one of 2020’s bubble companies. The more TSLA shares climb the more investors chase, largely motivated by fear of missing out.

Is Tesla disrupting the auto industry? Sure. The question is how much do you pay for a disruptor when much of future revenue and earnings have already been pulled forward in the current valuation (20x EV/Revenue, 233x EV/ cash flow) despite Tesla’s 1% market share, nascent Autonomous capability and modest Energy business?