At the start of May 2013, Tesla Motors was trading at around $50/share. In the last month it has jumped to $110 at the time of writing and it has delivered an incredible 270% in the last 12 months. One of the questions being asked by industry experts is whether or not the stock is a next-generation superstar or whether the investment community is caught up in “MuskHave-Hype”. At a price of $110/share, Tesla trades at an earnings multiple of 1000 times historical earnings, and the company continues to deliver an operating loss. Despite this, analyst consensus forecast from FT.com is that the share remains a “buy” but the highest target price is currently $109 and this needs to be reviewed following an earnings update from Tesla.
Tesla Motors Inc