Home Finance News Tesla Stocks Surge High Following Bullish Comments From Investor

Tesla Stocks Surge High Following Bullish Comments From Investor

The stocks of Tesla, a reputed US-based electric vehicle company, soared rocket high after an investor named Ron Baron announced that the company would make a sales revenue worth $1 trillion in a decade. Following his forecast, the stocks of Tesla closed at $887.06 on Tuesday, which is 13.7 % higher than the last trading that the company did.

The earlier reputation of the company and the blind faith of the investors on the company’s CEO Elon Musk is what is driving the company’s stocks into the new parabolic heights. However, the question still exists, whether Tesla is a bubble: and there is a mixed reaction to this. Some think that Tesla is too big a company to bluff its investors and some even have gone to the extent of comparing Tesla to the biggies of the market like Amazon and Apple.  On the other side of the spectrum, the detractors opine that this skepticism pertaining to the company’s future will definitely be justified at the end.

According to the analysts at Bespoke Investment Group, a renowned research firm,

Tesla’s bubble looks a lot bigger than biotech, homebuilders, or the aggregate Tech sector’s bubble. We don’t know how high Tesla’s shares will get, but with the company valued at a premium to the vast majority of the largest stocks on the planet, it’s hard to take it seriously as something other than a combination of speculative excess and positioning.

The Bespoke analysts believe that though this kind of a move can run longer than expected, but ultimately end in sell-offs. So, the analysts suggest the investors not to be a part of this trade at such times, because it will ultimately lead to huge falls.

David Pender
David Pender
David is a journalist interested in writing news-stories regarding forex. He has been in forex industry since 2014. he recently, joined our team as a news writer. He studied mass communication and has 7+ years of experience. He is an avid trader. He can be reached by email: david@forexnews.world.

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