The genius Nikola Tesla died in poverty but the car named after him is certainly on the way to make its investors well-off. As I look at the ticker, Tesla Motors Inc (NASDAQ:TSLA) is pushing a record price of $180 a share, up 9.1% for the day (September 19, 2013) so far. Personally, I was expecting this kind of home run since the FOMC meeting minutes were made public yesterday. Without the much anticipated septaper, where else the darling stocks will head but North?
We all the know history of Tesla and we all appreciate the great vision and great models it has delivered to the market so far. I understand many already consider this to be a Tulip Mania type trend but I will like to discuss why anyone in sound mind will get in now, at this price level. The trendline suggests that the price action has all the text-book characteristics of a bubble. However, I would like to present what is under the hood, the fundamentals.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.