Tesla CEO Says Stock Overvalued
Elon Musk says stock is overvalued. Wall Street thus far ignores it but the smart investors are listening.
‘I really feel like the valuation we have right now is more than we have any right we have to deserve honestly’ said Elon Musk on CNBC yesterday. Elon Musk is the CEO of Tesla Motors Inc (NASDAQ: TSLA). If you are long, these are not the comments you want to hear from the CEO of any publicly traded company. He should be the LAST one to admit the company is overvalued.
It does not take a genius to look at the chart and note it is up 400% year to date. This is a major overshoot and with Elon Musk finally saying what everyone has been thinking, the stock should start coming back to reality. I am somewhat surprised the market has not crushed the stock 10% already but the massive short interest is probably helping keep it a float.
Anytime a CEO makes a statement like that, beware. I give all the credit in the world to the stock price and its massive run up, as well as to Elon Musk. But common sense must prevail eventually. The market will start to note his comments and understand they carry more weight than any analyst.
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