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Tesla Stock is Going to Crash!

tesla

Tesla is an innovative car and solar energy company, and is founded by Elon Musk. The stock has been the source of a lot of controversy due to a sky high valuation (Tesla market cap $53.9 Billion), despite Tesla not expecting to be able to turn a profit untilĀ 2020 (source: seekingalpha).

The company is betting on it’s latest Model 3 electric car ( currently in production) to deliver financial results, any delays or mistakes to the production of the Model 3 could cause the stock to crash, & investors will be left with a sore head!

tesla
tesla

The high stock price of Tesla ($323.95) is boosted up by investors faith in the company to become a leader in autonomous driving and electric vehicles, there is no guarantee to investors Tesla will win. It is likely that larger car manufacturing companies with stronger balance sheets will win in this market in the long run, unless Tesla can pull a rabbit out of a hat!

 

 

 

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