The authors had previously valued the stock of Tesla in 2014 at about $100 using overly liberal projections; the price of Tesla subsequently went up to over $250. This article suggests that Tesla's stock is overpriced according to fundamentals and DCF calculations, and the speeches and promotions by Musk are propping up the stock price, due to long-term prospects over short-term results. But when a negative event regarding the company soon causes a cascade in the stock price, it will appear like a short-term reaction, but it's actually a Bayesian update that has been a long time coming.
CORNELL, B. (2016, Fall2016). The Tesla Run-Up: A Follow-Up with Investment Implications. Journal of Portfolio Management. pp. 1-4.
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