What happens when a company's founder becomes a pop culture sensation?
Hype. Hype. More hype.
Tesla (TSLA) investors may be willingly turning a blind eye to all the risk coming from traditional established car brands. Here are a few of recent note.
- All Volvo cars to be electric or hybrid from 2019
- Toyota Camry Now At 53 MPG: What Tesla Model 3?
- BMW Set to Introduce Electric Sedan
Tesla currently has no future earnings prospects and sells at almost 7 times sales. Both Toyota (TM) and General Motors (GM) trade at less than 1 times sales. The company may be overvalued by billions, but in the short-term the biggest concern should be the company's cash burn rate.
Target Price: $200.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.