Fledgling electric car maker Tesla's outrageous stock market valuation is clearly driven by irrational exuberance. Quartz has two graphics that highlight this. Surely, nothing in the world merits a spurt in valuation as spectacular as this. Did we invent tele-portation?
Especially when the fundamentals behind the valuation is so clearly off-sync from that of anyone else, including the best competitors in the market.
So what drives such valuations? Even assuming the firm being at the cutting edge of innovation in electric vehicles and would therefore be the target of inflated take-over bids as the technology's commercial prospects increase, there are too many uncertainties in the market to warrant anything remotely close to such valuations. Clearly Tesla occupies the echo chamber among stock market investors.
Especially when the fundamentals behind the valuation is so clearly off-sync from that of anyone else, including the best competitors in the market.
So what drives such valuations? Even assuming the firm being at the cutting edge of innovation in electric vehicles and would therefore be the target of inflated take-over bids as the technology's commercial prospects increase, there are too many uncertainties in the market to warrant anything remotely close to such valuations. Clearly Tesla occupies the echo chamber among stock market investors.
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