/// Don’t Bet Against Tesla, Says Musk
Is Tesla overvalued? With the company’s shares trading up more than 400 percent this year, some have argued that it is . Indeed, New York University finance professor Aswath Damodaran believes Tesla is worth $67.12 per share — far below the $164.89 at which its stock currently trades. If he’s right, that would make Tesla a great stock to short. But Tesla CEO Elon Musk advises against it. “Our valuation right now [assumes] a lot of good execution on our part in the future,” Musk told Fox News Thursday . “And we’re going to do our best to work hard and make sure that investors are not disappointed. … In the past, I said it’s really crazy to short Tesla. Is it so crazy to short Tesla right now? I mean, it’s not as crazy, but I still think it’s probably not a good idea.” What else is he supposed to say, right? A fair point. That said, it’s worth noting that Musk said something similar last September, right before Tesla shares sped off on a massive year-long rally that almost certainly brutalized investors shorting them. “I think it’s very unwise to be shorting Tesla,” Musk said at the time.
Don’t Bet Against Tesla, Says Musk