Is Tesla's Share Price Bonkers?

Shares in the electric car maker have soared more than 800% over the past year. Can it continue? Morningstar columnist John Rekenthaler takes a look 

John Rekenthaler 1 October, 2020 | 12:54AM

Tesla


In case you hadn’t noticed (unlikely), Tesla’s (TSLA) stock has levitated. Over the past 12 months, it has gained a cool 808%. If Tesla’s stock continues to increase at that rate, the company will become worth more than all other publicly traded businesses in the world combined by autumn 2022. A global equity-index fund would consist of 50% Tesla and 50% everything else

That probably won’t happen (although with Tesla, one seemingly never knows). The stock’s performance does raise the question, though: how speculative is Tesla’s price? Is the assessment of Tesla’s business prospects unprecedented, or have we experienced such optimism before with other wunderkind companies?

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Tesla Inc424.00 USD-1.59

About Author

John Rekenthaler

John Rekenthaler  John Rekenthaler is Vice President of Research for Morningstar.

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