Tesla Inc.’s stock valuation has always been a highly contested issue among bearish investors.
Most investors cannot understand why the company continues to trade at its current valuation (EV/NTM Revenue of 15.7x) as its automotive peers’ median is only 2.5x.
Bearish investors argue that Tesla investors are teetering on edge and walking on a thin line all the time.
Meanwhile, their “see, I told you so” arguments have been short-lived, as its stock continues to surge to new highs throughout the years.
Meanwhile, brave investors emphasize that Tesla stock’s valuation is not exaggerated. TSLA is still ARK Innovation ETFs (ARKK) biggest holding.
Tesla stock’s mean price target has repeatedly been upgraded over the years and follows a highly consistent rising trend.
The conflict between the bull and bear pattern over its valuation has increased even as its stock seems to continue consolidating.