For the first time since the mid-term elections of 1920, Tesla has managed to have a down day. It isn’t anything catastrophic – – about 7% from its peak – – but it is now at the bargain-basement P/E of 1852. So you value investors might want to take a hard look.
Of course, there isn’t a human on the planet that doesn’t know about TSLA. There are still undiscovered tribes in the deepest jungles of Brazil that have heard the tale of Elon and his magical money machine. For years, TSLA really didn’t do much of anything. It’s hard to believe this is the same stock, but the majority of the company’s history looked like this:
Not lately, though. 1,000% gains are no problem. And at this point they could sell a new car each month to every family in America, and I’m not sure if it would still merit its valuation. As we all know by now, however, stocks have nothing to do with companies. It’s all about the funds flowing in and out of financial instruments. The fact that there is a product-manufacturing corporation associated with the ticker symbol is, at this point, merely incidental.
My only participation? Sticking with my virtual puts!
