The TSLA bubble

Published on 2020-02-05 by Mohd

The market is fickle. This is especially true for TSLA, which shoots up and down at the whim of the market it seems. It appears to be a very emotional stock. Any small negative news plummets the stock and any positive news sends it to new heights over night. It's completely normal to see 20% percent swings over the span of 24 hours. The profit reported in 2019 Q4 financials caused the stock to skyrocket. This week the stock broke it's previous all time high record selling for over $960/share. News of the Shanghai factory shutting down due to the coronavirus caused the stock to lose 20% of its value within a day.

The stock has gone from $250 to $900 within the span of a quarter. It's currently selling for higher than the price targets set by most well known bullish analysts. This is happening for a company that has never turned a profit for a whole fiscal year. TSLA is in a bubble.

Harvard researchers say that there is a an 80% probability of the stock crashing.