Tesla (Nasdaq: TSLA) is called “the biggest meme stock we’ve ever seen” by Yale School of Management Senior Associate Dean Jeff Sonnenfeld, who made the comments in a recent interview with CNBC.
Sonnenfeld’s comments repeat them from many of the company’s skeptics who claim that its price-to-earnings are far too high compared to other companies in the tech industry as well. Tesla is often compared to companies such as Apple, Nvidia and Microsoft when these types of discussions come up.
Basically, yes, Tesla is acting at a P/E level that is markedly above that for any comparable company.
However, it is worth mentioning that Tesla is also not traded as a typical company.
Here’s what Sonnenfeld said about Tesla:
“This is the biggest meme stock we’ve ever seen. Even at its peak, Amazon was nowhere near the musical magic wand.”
Many analysts have admitted in the past that they believe that Tesla is an unconventional stock in the sense that many analysts deal with it based on narrative and not basic elements. Ryan Brinkman from JP Morgan once said:
“Tesla shares continue to beat us like being completely divorced from the basic elements.”
Dan Nathan, another notorious skeptic of Tesla Shares, recently turned Bullish on the stock due to “technical and moods.” He said just last week:
“I think from a trade perspective, it looks very interesting.”
Nathan said Tesla shares show signs of strength that goes on, including keeping his 200-day moving average and adhering to current resistance levels.
Sonnenfeld’s synopsis of Tesla shares points out that there may be “a little too much emphasis on Musk’s magic magic wand.”
Elon Musk bought just $ 1 billion dollars in the Tesla share, his biggest purchase ever
This could refer to different things: Maybe his recent $ 1 billion share purchase that sent the stock skyrocketing, or the fact that many Tesla investors are fans and owners who don’t buy and sell on numbers, but rather on news that Musk may be reporting itself.
Tesla trades about $ 423.76 at the time of publication, from 1 p.m. 15.25 on the East Coast.