Tesla Stock Will Have To Grow 100 Percent To Return To Its Previous High Value

Bernstein downgraded Tesla's stock to underperform. But the poster child of Nasdaq's near-vertical ascent must be electric vehicle company Tesla (NASDAQ:TSLA) with its ‘unconventional' CEO, Elon Musk. If enough investors do this, it pushes the stock price up even further, forcing even more buying by short-sellers.

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Unable to count on making money from selling cars, Musk has relied on other strands to weave his growth narrative. Traders who bet against Tesla's success could be the ones now pushing the share price higher. Shares closed at US$2,001.83. on NASDAQ, a 6.6 percent rise on the day.

TSLA split its stock 5-for-1 earlier this week. Credit Suisse analyst Dan Levy wrote on Tuesday that Tesla's high stock price gives it a capital cost advantage over peers. One such bonus was unlocked last month when the company's market capitalization reached $100 billion, but Mr. Musk will receive the reward only if Elon Musk that valuation is sustained.

Shares have soared more than 29% in the past four sessions alone as other analysts have raised their price targets and hyped up Tesla's Battery Day event on September 22. If you've made a good profit from owning shares of Tesla, it might be a good time to consider cashing out.

A loosely formed Shorty Ground Force began posting pictures of Teslas stored for weeks on lots across the country. Thus, we now have a 21st century wealth gap that is wider and more toxic than any time since the stock market crash of 1929 and the Great Depression which followed in its wake.

Hovering near record highs amid a global pandemic and economic catastrophe, the market, like Tesla, highlights the degree to which equity prices have come untethered from current economic reality and future earnings expectations. On Friday, shares dropped by 8pc, sending the company's market capitalisation below the $100bn threshold for the first time since January.