Tesla’s Elon Musk: Stock Is Overvalued
Tesla (NASDAQ:TSLA) CEO Elon Musk might be arrogant about his Model S, but he is also realistic about the company’s share price, and he hinted at a warning Thursday that the stock is overvalued. Musk was the subject of a Bloomberg Television interview when he made the weighty remark, but the statement was followed up by his explanation of the Model S fire, and that effectively won most of the interviewer’s attention.
Nonetheless, the CEO made his point when he asserted that, “The stock price that we have is more than we any right to deserve,” and he also added the warning, “It’s difficult to predict where it goes in the short- and medium-term, but I do feel good about having the company achieved that value more in the long-term.”
It’s easy to understand why the CEO is concerned over Tesla’s rising stock price, as CNN highlights that shares are up 400 percent this year and are trading at almost 100 times the company’s earnings estimates, but investors are still not exactly heeding warnings. Musk offered similar indications back in August that shares are rising too high, but the stock has jumped 10 percent since then, and that pattern doesn’t appear to be slowing.