According to BusinessInsider.com, Tesla stock is still overpriced despite a 40% reduction due to the coronavirus.
- According to Sacconaghi, why is Tesla stock so vulnerable?
- What is a realistic baseline valuation for the stock?
- Explain Saconaghi’s statement: ” Tesla stock remains high enough that it takes very aggressive assumptions on its future auto business to justify its valuation on a DCF basis.”
Reinicke, C. (2020). One expert says Tesla’s stock is still expensive, despite plummeting 40% amid the coronoavirus market. Business Insider.com, March 16 (Retrievable online at https://markets.businessinsider.com/news/stocks/tesla-stock-price-too-high-amid-coronavirus-selloff-analyst-says-2020-3-1029001141)