Tesla Approaches $1,000 Per Share Valuation - What's Your Tesla Stock Position?
Tesla stock is on a wild ride. It began back in October when the stock, TSLA, was trading at about a quarter of the value it is trading at today. By December, Tesla stock had hit its prior all-time high of around $380 per share. The real climb seems to have been pegged to Tesla's Q4 financial results. As this story is typed the stock is above $900 per share.
One previous milestone was $500 per share, an event we previewed less than one month ago. Imagine. A stock that has doubled so many times in the span of just four months. Is it a bubble? Is it based on any meaningful earnings to share price ratio? You be the judge. Not many folks seem to take into account anyone else's view of Tesla the company or Tesla the products, so why would they care about an opinion on a stock price?
At the tail end of my stories on Tesla stock, I always post a disclaimer about not being a stock analyst. I usually also mention I hold no individual stocks. Just by chance, I had a chat with the administrator of my IRA, a former 401K that is now converted since I no longer work for an employer with a plan. I asked him to confirm a few things for me. First I asked him if any of my mutual funds are "Shorting Tesla." He assured me that none were, since that type of stock trade plan is prohibited by the plans I participate in. He said that most mutual funds don't have managers who short stock, certainly not in any widespread manner.
Next up, I asked him if my comment about not owning any "individual stocks" is true. He confirmed that I do not. I own shares of mutual funds that are made up of many stocks. Last, I asked him if any of my mutual funds had a very large position in Tesla stock. He said no. Mostly because the funds I am invested in require the manager to diversify within that fund. This put my mind at ease that the big gains in my IRA that I had been seeing were not at risk of a Tesla bubble. Nor was I in any way suffering for having invested accidentally in a way that included any Tesla short sale activity.
Since I am not a stock analyst, nor am I a financial advisor, I felt better knowing that my money was not in Tesla right now. What's your Tesla stock position and do you have an exit plan or ceiling sell price in mind? Tell us in the comments below. Tesla $1K seems just around the corner.
Tesla stock chart courtesy of NASDAQ and Google.
Tesla understands that it must be a tech company to remain relevant. Now Volkswagen understands it too. Other carmakers should understand this too, so they may remain competetive in the next 7-10 years. Watch this video from Torque News editor Armen Hareyan and click to subscribe to Torque News Youtube channel for daily automotive news analysis.
John Goreham is a life-long car nut and recovering engineer. John's focus areas are technology, safety, and green vehicles. In the 1990s, he was part of a team that built a solar-electric vehicle from scratch. His was the role of battery thermal control designer. For two decades he applied his engineering and sales talents in the high tech world and published numerous articles in technical journals such as Chemical Processing Magazine. John's work has appeared in print in dozens of American newspapers and he provides reviews to many vehicle shopping sites. You can follow John on Twitter, and view his profile at Linkedin.